According to insiders, ADNOC has decided to allocate 40% of its shares in the Ruwais LNG project to the world's four largest energy giants.
Intelligent finance and economics APP learned that according to insiders, Abu Dhabi National Oil Company (ADNOC) has decided to allocate 40% of its shares in the Ruwais liquefied natural gas (LNG) project to the world's four largest energy giants: Shell (SHEL.US), TotalEnergies (TTE.US), BP plc (BP.US) and Mitsui & Co., Ltd. It is expected that these four companies will each hold 10% of the shares in the project. This move is expected to double the shipping fuel production in the UAE, with annual output expected to reach about 9.6 million tons by the end of 2028.
Another source pointed out that ADNOC plans to transfer an additional 5% stake in the project to another partner, but did not provide specific details. At the same time, ADNOC also allocated 2 million tons/year of production capacity to its shareholders. Due to the sensitivity of the negotiations, all sources requested anonymity.
The market expects that these companies will obtain subscription agreements at a cost lower than the market price, even so they will face lower flexibility.
ADNOC, Shell, BP plc, and TotalEnergies have not commented on this news, while Mitsui & Co., Ltd. has not yet responded to requests for comment.
The project made its final investment decision in June and is expected to become a key link in Shell and TotalEnergies' LNG trade from the Middle East to Asia. As a state-owned oil giant, ADNOC has ambitious plans in the field of natural gas and LNG, which is considered one of the pillars of the company's future growth, alongside renewable energy and petrochemical products. Currently, ADNOC's annual LNG production is about 6 million tons, and the company's goal is to increase its production capacity to 15 million tons.
Since the Russia-Ukraine conflict, global demand for natural gas has surged, and Gulf countries have sought to benefit from this trend. For example, Qatar announced this year that it will further expand its North Field project to consolidate its position as the world's top LNG exporter.
ADNOC has signed supply agreements with Germany's EnBW, the European Energy Security Organization (SEFE), and China's New Aotecar Natural Gas Company. The project is expected to be the region's first LNG export facility to use clean energy technology, marking a step forward for the energy industry in adopting more eco-friendly solutions.