ADNOC’s Ruwais LNG to Allocate 40% Stake to Shell, Total, BP, Mitsui, Sources Indicate

By Ron Bousso, Marwa Rashad, and Emily Chow

LONDON/SINGAPORE (Reuters) – The Abu Dhabi National Oil Company (ADNOC) plans to allocate a 40% stake in its Ruwais liquefied natural gas (LNG) project to four major energy firms: Shell, TotalEnergies, BP, and Japan’s Mitsui, according to sources familiar with the matter.

The companies are anticipated to receive an equal stake of 10% each in the initiative, which aims to more than double the UAE’s sea-borne fuel output, projecting a production of approximately 9.6 million metric tons per annum (mtpa) by late 2028. Additionally, there are plans to assign another 5% stake to a different partner, though details remain undisclosed.

ADNOC is also set to allocate 2 mtpa for its shareholders, as reported by another source, who requested anonymity due to the sensitive nature of the discussions. It is expected that these companies will receive the offtake at a price lower than the market rate, albeit with reduced flexibility.

While ADNOC, Shell, BP, and TotalEnergies declined to provide comments, Mitsui had not responded to requests for input at the time of reporting.

The project, which secured its final investment decision in June, is poised to play a significant role in Shell and TotalEnergies’ LNG trade between the Middle East and Asia. ADNOC envisions significant growth in its gas and LNG sectors, viewing them, alongside renewable energy and petrochemicals, as essential components for future expansion. Presently, ADNOC produces about 6 mtpa of LNG and aims to increase this capacity to 15 mtpa.

The surge in demand for natural gas following Russia’s invasion of Ukraine has prompted several Gulf nations to explore new opportunities. Qatar, for example, recently announced plans to further expand its North Field project, solidifying its position as one of the world’s leading LNG exporters.

ADNOC has already established supply agreements with Germany’s EnBW, Securing Energy for Europe (SEFE), and China’s ENN Natural Gas. Furthermore, the project is expected to be the region’s first LNG export facility powered by clean energy.