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Adnoc Gas said in a statement on Monday it aims to acquire the stake in the second half of 2028.
“It has always been our intention to acquire Adnoc’s 60 percent stake in Ruwais LNG. This investment is a central component of our ambitious international growth plans and will strengthen Adnoc Gas’ position as a powerhouse in the global LNG market,” Mohamed Alebri, CEO of Adnoc Gas said.
“Over the next five years we plan to invest $15 billion in Capex in projects which will enable us to capture opportunities from the forecast increase in domestic and global demand for the lower carbon gases we produce,” he said.
In June, Adnoc announced the final investment decision on the Ruwais project and the $5.5 billion EPC award to a joint venture led by France’s Technip Energies.
Before that, Adnoc issued in March this year a limited notice to proceed for early engineering, procurement, and construction activities to the joint venture.
Besides this EPC deal, Adnoc Gas also awarded US energy services firm Baker Hughes a contract for the LNG export terminal.
Baker Hughes will provide two electric liquefaction systems (e-LNG) for the Ruwais LNG project.
Moreover, BP, Mitsui & Co., Shell, and TotalEnergies agreed to buy a 10 percent equity stake in Adnoc’s LNG export terminal.
Ruwais LNG deals
On behalf of its parent, Adnoc Gas is managing the construction and design of Ruwais LNG, as well as leading the marketing of LNG volumes.
Over 7 mtpa of the project’s total production capacity of 9.6 mtpa has already been committed to international customers.
State-owned Adnoc just signed a sales and purchase agreement with German gas importer Securing Energy for Europe.
The SPA converts the previous heads of agreement between Adnoc and SEFE announced in March into a definitive agreement.
Under the 15-year deal, Adnoc will supply 1 million tonnes per annum of LNG to SEFE Marketing and Trading Singapore, a subsidiary of SEFE.
This is the first definitive agreement for the supply of LNG from the 9.6 mtpa Ruwais LNG project.
Adnoc recently also signed a heads of agreement with Indian Oil and it signed a deal with Japan’s Osaka Gas.
The first of the plant’s two trains is expected to come on stream in the second half of 2028 and the second in early 2029.
This LNG project will more than double Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.
Adnoc currently owns a 70 percent stake in Adnoc LNG, which currently produces about 6 mtpa of LNG from its facilities on Das Island.
Adnoc Gas recently confirmed to LNG Prime that it will not proceed with the LNG2.0 project at its LNG export facility on Das Island
The company planned to add about 0.9 mtpa of production capacity at its Das Island plant by debottlenecking the terminal’s three liquefaction trains.
The LNG 2.0 project included electrification of LNG trains to reduce greenhouse gas (GHG) emissions, debottlenecking LNG trains, and ethane extraction and export.
Besides 0.9 mtpa of LNG, the project would have added 1.2 mtpa of ethane and 1.1 mtpa of C3+.
Results
Adnoc Gas on Monday also announced its third-quarter results-
The firm said its net income increased 11 percent year-on-year to $1.24 billion,
Adnoc Gas’ third-quarter revenues rose to $6.28 billion, up 8 percent YoY, exceeding $6 billion for the fourth quarter in a row.
The results are driven by higher sales volumes and an improved price environment for export-traded liquids, the company said.
Ebitda increased 18 percent YoY to $2.205 billion, while free cash flow was $1.18 billion.
