ADNOC Group to build new low-carbon LNG plant in Ruwais

ADNOC Group said its new low-carbon LNG growth project will move to the Al Ruwais Industrial City in Abu Dhabi instead of Fujairah.

The state-owned energy firm said the new location offers significant synergies and existing infrastructure that will be leveraged to deliver project efficiencies and unlock additional value for the group, its partners and the UAE.

Al Ruwais is the operational hub for ADNOC Group and its operating companies.

“Following a comprehensive evaluation of location options during the ongoing design phase, the proximity of Al Ruwais to ADNOC’s current operations, as well as its future growth projects, in addition to a well-established local supplier base were important considerations in the company’s decision,” ADNOC said in a statement.

As part of the design phase, ADNOC announces that its world class low-carbon LNG growth project will move forward in the Al Ruwais Industrial City, Al Dhafrah, Abu Dhabi#WamNews https://t.co/Q5ptJianXI pic.twitter.com/NbJ8FABXT5

— WAM English (@WAMNEWS_ENG) May 2, 2023

The intends to more than double its LNG production capacity through its planned LNG growth project to meet increased global demand for natural gas.

The Al Ruwais facility, which is designed with electric-powered processing facilities, will run on renewable and nuclear grid power making it one of the lowest carbon-intensity LNG facilities in the world.

ADNOC Group ramp up LNG production

Meanwhile, ADNOC Group announced a three-year deal worth around $1.2bn (under current market conditions) on Monday to supply LNG to TotalEnergies.

Read: ADNOC Gas, TotalEnergies Gas and Power ink 3-year LNG supply deal

ADNOC Gas, the gas business of ADNOC Group, will supply TotalEnergies, which will be delivered to various export markets around the world.

The Abu Dhabi energy company said the deal demonstrates ADNOC Gas’ ability to meet growing global demand for LNG, a critical energy transition fuel.  The three-year contract is expected to commence in 2023 and will run through 2025, reinforcing both companies’ positions as key players in the global market.

ADNOC Group consolidated its gas processing and LNG operations under the ADNOC Gas entity in January and floated a stake in that company on the Abu Dhabi Securities Exchange earlier in March.

The newly founded company is expected to unlock significant financial and operational opportunities. It will be more agile, better able to respond to changing market demands, and well-positioned to take advantage of strategic opportunities for future growth.

The LNG gas firm operates eight processing sites both onshore and offshore with a pipeline network of over 3,250km. Existing joint venture (JV) partners to ADNOC LNG (Mitsui & Co, bp and TotalEnergies) and ADNOC Gas Processing (Shell, TotalEnergies and PTTEP) are continuing in their respective JV partnerships with ADNOC Gas.

The company aims to achieve a daily gas processing capacity of 10 billion standard cubic feet across its eight onshore and offshore sites and a pipeline network of over 3,250 kilometres.

In February, ADNOC Gas delivered 137,000 cubic meters of LNG to Germany, the first-ever natural gas cargo shipped to the country from the Middle East.

Read: Abu Dhabi’s ADNOC Gas surges on ADX trading debut