Abu Dhabi National Oil Company (ADNOC) has designated a substantial 40% stake in its Ruwais liquefied natural gas (LNG) venture to global energy leaders Shell, TotalEnergies, BP, and Japan’s Mitsui, according to sources familiar with the matter.
Scheduled for completion by late 2028, the project aims to significantly boost the UAE’s LNG production, increasing it by over 9 million metric tons annually. Each of the four companies—Shell, TotalEnergies, BP, and Mitsui—will acquire a 10% stake in the venture, underscoring their strategic involvement in expanding regional energy capabilities.
Additionally, ADNOC plans to allocate a 5% stake to another partner, details of whom remain undisclosed at this stage. Sources close to the negotiations revealed that ADNOC will also reserve 2 million metric tons per annum of LNG for its shareholders, although at a lower market price and with reduced flexibility in terms of usage.
Despite the significant implications of this project for the energy landscape in the Middle East and Asia, ADNOC, Shell, BP, and TotalEnergies declined to comment on these developments. Mitsui has not responded to requests for comments as of now.
The Ruwais LNG project, having received final investment approval in June, is poised to play a pivotal role in enhancing LNG trade routes between the Middle East and Asia, particularly benefiting Shell and TotalEnergies in their regional strategies.
ADNOC’s ambitious plans in gas and LNG production align with its broader vision of integrating renewable energy and petrochemicals into its growth trajectory. Presently producing 6 million metric tons annually, ADNOC aims to scale its LNG output to 15 million metric tons per annum in the near future.
The surge in natural gas demand following geopolitical shifts, notably Russia’s actions in Ukraine, has prompted several Gulf countries to bolster their LNG capabilities. Qatar, for instance, recently announced expansions to its North Field project, reinforcing its position as a global LNG powerhouse.
Already securing supply agreements with entities like Germany’s EnBW, Securing Energy for Europe (SEFE), and China’s ENN Natural Gas, ADNOC’s Ruwais LNG project is poised to become the region’s inaugural LNG export facility powered by clean energy sources.
