Adnoc Gas dishes out Ruwais LNG contracts worth $2.1 billion

According to Adnoc Gas, the largest contract, valued at $1.24 billion for the LPP, was awarded to a consortium consisting of Engineering for the Petroleum and Process Industries (ENPPI) and Petrojet.

Moreover, a $514 million contract for transmission pipelines was awarded to China Petroleum Pipeline Engineering, while Petrofac Emirates will develop the new compression facilities under a $335 million contract.

Adnoc Gas said the LPP and compression facilities will be located within its Habshan 5 plant.

The five plants of the Habshan complex have a combined capacity to process 6.1 billion standard cubic feet of gas per day.

Adnoc Gas said the newly awarded transmission pipelines will connect the Habshan complex with the Ruwais LNG facility.

The capital expenditure (CAPEX) for the LPP, compression facilities, and transmission pipelines, does not form part of the costs previously outlined by Adnoc Gas for its intended acquisition of Adnoc’s majority stake in the Ruwais LNG project once the plant becomes operational in 2028, it said.

Adnoc Gas said this investment is part of the $15 billion CAPEX plan through 2029, as outlined in Adnoc Gas’ recent strategy update.

Doubling LNG capacity

Adnoc Gas said in November 2024 it expects to splash about $5 billion to buy a 60 percent operating interest from its parent Adnoc in the 9.6 mtpa Al Ruwais LNG export plant.

BP, Mitsui & Co., Shell, and TotalEnergies agreed to buy a 10 percent equity stake in Adnoc’s LNG export terminal.

In June 2024, Adnoc announced the final investment decision on the Ruwais project and the EPC award to the joint venture led by Technip Energies.

The 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.