Major international oil and gas companies, including major LNG traders Shell and TotalEnergies, are in talks to acquire stakes in the United Arab Emirates’ (UAE) new LNG export project, unnamed sources close to the negotiations said . Bloomberg Tuesday.
The project, Ruwais LNG, is being developed by UAE state-owned company ADNOC and is expected to comprise two 4.8 million metric tonnes per annum (mmtpa) LNG liquefaction trains with a total capacity of 9.6 mmtpa. The project is expected to more than double ADNOC’s LNG production capacity, compared to the current LNG project alone at Das Island.
ADNOC signed an agreement with German state-owned Securing Energy for Europe (Sefe) last month, under which Abu Dhabi National Oil Company will supply LNG to Germany for 15 years starting in 2028.
The definitive LNG agreement is contingent on a final investment decision on the Ruwais LNG project, including regulatory approvals, and the negotiation of a definitive sale and purchase agreement between the two companies.
The FID on the Ruwais LNG project could take place as early as May, according to Bloomberg sources.
With the FID expected this year, the Ruwais LNG project is expected to become the first LNG export facility in the Middle East and North Africa region to operate on clean energy, making it the one of the lowest carbon-intensive LNG plants in the world, ADNOC said. last month, when it issued a Limited Notice to Proceed (LNTP) for the project’s early engineering, procurement and construction (EPC) activities.
ADNOC does not need financial support from other companies for Ruwais LNG and may decide not to sell its stakes in the project, Bloomberg sources note.
The UAE, Saudi Arabia and Qatar are all looking to play a bigger role in the global LNG market, with the Saudis seeking overseas investment and Qatar adding another major LNG expansion project to its two ongoing projects, aimed at increasing its total LNG export capacity by 85.% from current levels by 2030.
By Charles Kennedy for Oilprice.com
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Major international oil and gas companies, including major LNG traders Shell and TotalEnergies, are in talks to acquire stakes in the United Arab Emirates’ (UAE) new LNG export project, unnamed sources close to the negotiations said . Bloomberg Tuesday.
The project, Ruwais LNG, is being developed by UAE state-owned company ADNOC and is expected to comprise two 4.8 million metric tonnes per annum (mmtpa) LNG liquefaction trains with a total capacity of 9.6 mmtpa. The project is expected to more than double ADNOC’s LNG production capacity, compared to the current LNG project alone at Das Island.
ADNOC signed an agreement with German state-owned Securing Energy for Europe (Sefe) last month, under which Abu Dhabi National Oil Company will supply LNG to Germany for 15 years starting in 2028.
The definitive LNG agreement is contingent on a final investment decision on the Ruwais LNG project, including regulatory approvals, and the negotiation of a definitive sale and purchase agreement between the two companies.
The FID on the Ruwais LNG project could take place as early as May, according to Bloomberg sources.
With the FID expected this year, the Ruwais LNG project is expected to become the first LNG export facility in the Middle East and North Africa region to operate on clean energy, making it the one of the lowest carbon-intensive LNG plants in the world, ADNOC said. last month, when it issued a Limited Notice to Proceed (LNTP) for the project’s early engineering, procurement and construction (EPC) activities.
ADNOC does not need financial support from other companies for Ruwais LNG and may decide not to sell its stakes in the project, Bloomberg sources note.
The UAE, Saudi Arabia and Qatar are all looking to play a bigger role in the global LNG market, with the Saudis seeking overseas investment and Qatar adding another major LNG expansion project to its two ongoing projects, aimed at increasing its total LNG export capacity by 85.% from current levels by 2030.
By Charles Kennedy for Oilprice.com
More important reading on Oilprice.com: