According to insiders, Shell, Total, BP plc, and Mitsui & Co. have agreed to invest in Adnoc's next LNG export project in Ruwais, expected to have an annual output of 9.6 million tons and elevate the UAE's LNG capacity to the second-largest in the Middle East after Qatar. Adnoc signed a construction contract worth $5.5 billion last month.
On July 5th, Cailianshe news learned from informed sources that four multinational companies have agreed to invest in Abu Dhabi National Oil Company's (Adnoc) next liquefied natural gas (LNG) export project.
The above-mentioned sources pointed out that Shell, Total, BP p.l.c. and Mitsui & Co., Ltd. will each hold 10% of the shares of the Ruwais LNG plant, and the agreement may be signed as early as next week.
A spokesperson for Mitsui & Co., Ltd. responded that the company has not made any decisions at this time.
Betting on natural gas
Global energy giants are betting on long-term demand for natural gas. Despite the fact that fuel prices have fallen from their high point two years ago, they are still at a relatively high level, which has increased the attractiveness of new natural gas supply projects.
The UAE currently has a liquefied natural gas export capacity of only 5.8 million tons, making it the smallest producer in the Gulf region. The latest Ruwais project is expected to have an annual output of 9.6 million tons, bringing the country's capacity to second place in the Middle East behind Qatar.
Natural gas has become one of Adnoc's key investment areas, and the Ruwais project is the latest step in the UAE's push to promote the global liquefied natural gas market domestically and internationally. Adnoc has decided to continue implementing the Ruwais project and signed a $5.5 billion EPC (engineering, procurement and construction) contract last month.
Adnoc has recently signed agreements to invest in similar projects in the United States and Mozambique, including: acquiring 11.7% of the shares of the Rio Grande LNG export project in Texas, USA; and acquiring 10% of the shares of a nearshore liquefied natural gas project in Mozambique.
Musabbeh Al Kaabi, Adnoc's executive director responsible for international growth, said in a recent interview, that "We have made it clear that we are interested in key areas such as low-carbon solutions, renewable energy, natural gas and chemicals."
According to the latest news, three of the four companies that have decided to invest are partners of Abu Dhabi's only existing LNG export factory on Das Island - Mitsui, BP p.l.c. and Total.