- Shell, TotalEnergies, BP, and Japan’s Mitsui have a 40 per cent stake in the Abu Dhabi National Oil Company.
- The state oil giant has big ambitions in gas and LNG, which, along with renewable energy and petrochemicals, it sees as pillars for its future growth.
Shell, TotalEnergies, BP, and Japan’s Mitsui have a 40 per cent stake in the Abu Dhabi National Oil Company (ADNOC) Ruwais liquefied natural gas (LNG) project.
The four companies will each get a stake of 10 per cent in the project, which will more than double the UAE’s output of sea-borne fuel. The project will produce about 9.6 million metric tons per annum (mtpa) by late 2028.
ADNOC plans to assign another 5 per cent stake to another partner without giving details. A source, speaking on condition of anonymity due to the sensitivity of the talks, said ADNOC has also allocated 2 mtpa to shareholders.
The source said the companies will get the offtake at a lower price than the market but with less flexibility.
The project, which received the final investment decision in June, is key for Shell and TotalEnergie’s Middle East-Asia LNG trade. The state oil giant has big ambitions in gas and LNG, which, along with renewable energy and petrochemicals, it sees as pillars for its future growth. It currently produces around 6 mtpa of LNG and aims to lift its capacity to 15 mtpa.
As demand for natural gas spiked following Russia’s invasion of Ukraine, several Gulf countries have looked to capitalise. This year, Qatar announced a further expansion of its North Field project, cementing it as one of the world’s top LNG exporters.
ADNOC has already signed supply deals with Germany’s EnBW, Securing Energy for Europe (SEFE), and China’s ENN Natural Gas. The project is expected to be the region’s first LNG export facility to run on clean power.