Shell, BP and TotalEnergies Invest in Major Abu Dhabi LNG Project

The Ruwais LNG facility will utilise an electric-powered liquefaction system with access to a renewable power supply

Global energy majors Shell, TotalEnergies, BP, and Japan’s Mitsui have secured a collective 40% stake in Abu Dhabi National Oil Company’s (ADNOC) lower-carbon intensity Ruwais liquefied natural gas (LNG) project, following landmark agreements signed on Wednesday.

Each company BP, Mitsui & Co., Shell, and TotalEnergies will be awarded a 10% equity stake in the Ruwais LNG project, with ADNOC retaining a 60% majority stake. Additionally, ADNOC has signed new long-term LNG sales commitments with international partners, including agreements for the delivery of 1 million tonnes per annum with Shell and 0.6 mtpa with Mitsui & Co., bringing the committed Ruwais LNG production capacity to 70%.

Shell Overseas Holdings Limited, a subsidiary of Shell plc, has signed an agreement to invest in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais liquefied natural gas (LNG) project in Abu Dhabi.

The Ruwais LNG project will feature two LNG liquefaction trains, each with a capacity of 4.8 million metric tonnes per annum, totaling 9.6 mmtpa. Shell’s subsidiary, Shell International Trading Middle East Limited FZE, has also secured an agreement to offtake 1 mmtpa of LNG from the project.

“This investment decision builds on our long-standing partnership with ADNOC,” said Shell’s Chief Executive Officer Wael Sawan. “In line with our strategy to create more value with less emissions, we are investing in additional LNG capacity and further growing our world-leading LNG portfolio, with energy-efficient and carbon-competitive projects.”

The Ruwais LNG facility will utilise an electric-powered liquefaction system with access to a renewable power supply, resulting in lower operational emissions compared to traditional gas-powered LNG facilities. ADNOC will hold a majority 60% share in the project and will act as the lead developer and operator. Shell, BP, Mitsui, and TotalEnergies will each hold 10% stakes.

ADNOC has awarded an engineering, procurement, and construction (EPC) contract to a Technip-led joint venture, with construction set to commence soon in Al Ruwais Industrial City, Abu Dhabi. LNG deliveries are expected to begin in 2028.

The agreement was signed by Dr Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO; Murray Auchincloss, CEO of bp; Kenichi Hori, President and CEO of Mitsui & Co.; Wael Sawan, CEO of Shell; and Patrick Pouyanné, Chairman and CEO of TotalEnergies.

Source: oilandgasmiddleeast

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