Mitsui: no decision on Adnoc’s LNG project

Japan’s trading house Mitsui & Co said nothing has been decided on an LNG project in the United Arab Emirates, after media reports said that the company aims to take part in Adnoc’s planned Al Ruwais LNG project.

“It was reported that Mitsui & Co will invest in an LNG project in the United Arab Emirates, but this was not announced by the company,” Mitsui said in a statement.

“Furthermore, no decision has been made by the company at this time,” it said.

The Nikkei reported on Tuesday that Mitsui would take 10 percent stake in Adnoc’s Al Ruwais LNG project and the investment is expected to total tens of billions of yen (several hundred million dollars).

The report said that Adnoc would have a 60 percent stake in the project, while Shell and BP, as well as TotalEnergies, are expected to invest in the project.

Bloomberg also reported Shell and TotalEnergies are among several global energy companies in talks to buy stakes in the project, as well as to buy LNG from the project.

A final investment decision on the project could happen as soon as next month, the report said citing people with knowledge of the matter.

Ruwais LNG

UAE’s Adnoc recently signed a heads of agreement with a unit of German gas importer Securing Energy for Europe (SEFE) to supply the latter with liquefied natural gas from its planned LNG terminal in Al Ruwais.

Under the deal, SEFE Marketing & Trading Singapore will buy 1 million metric tons per annum of LNG for a period of 15 years.

This is the second long-term LNG supply agreement from the Ruwais LNG project, following the 15-year agreement with China’s ENN Natural Gas signed in December 2023.

Under this deal, ENN LNG (Singapore), a unit of ENN Natural Gas, will buy 1 mtpa of LNG for a period of 15 years.

Adnoc recently also issued a limited notice to proceed for early engineering, procurement, and construction activities to a joint venture led by France’s Technip Energies for its planned LNG terminal in Al Ruwais.

The firm said it expects to take a final investment decision on the project later this year, while early civil works at the site have already started.

When completed, the project, which consists of two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa, will more than double Adnoc’s LNG production capacity.

Adnoc currently owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.

Last year, Adnoc announced it will build its second LNG terminal in Al Ruwais. The firm previously planned to construct the facility in Fujairah.

Adnoc Gas, the gas and LNG unit of Adnoc, also awarded US energy services firm Baker Hughes a contract for the planned LNG export terminal.

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