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 – The Abu Dhabi National Oil Company (ADNOC) has designated a 40% stake in its Ruwais liquefied natural gas (LNG) project to four major energy firms: Shell, TotalEnergies, BP, and Mitsui from Japan, according to sources familiar with the situation.

Each of the companies is anticipated to receive a 10% stake in the project, which is set to more than double the UAE’s output of sea-borne fuel, with an expected production of approximately 9.6 million metric tons per annum (mtpa) by late 2028.

Additionally, ADNOC plans to allocate another 5% stake to a different partner, though further details have not been disclosed. The company has also reserved 2 mtpa for shareholders, as shared by another source who requested anonymity due to the sensitive nature of the discussions.

Sources indicate that these companies will likely obtain the offtake at a competitive price compared to the market, albeit with reduced flexibility. ADNOC, along with Shell and TotalEnergies, declined to comment, while Mitsui did not provide an immediate response to requests for comment.

Having received a final investment decision in June, this project is expected to be pivotal for Shell and TotalEnergies in their LNG trade between the Middle East and Asia. ADNOC has ambitious plans for gas and LNG development, viewing these resources as essential to its future alongside renewable energy and petrochemicals. Currently, the company produces around 6 mtpa of LNG and aims to increase its capacity to 15 mtpa.

In response to the surge in natural gas demand following Russia’s invasion of Ukraine, several Gulf nations are looking to capitalize on the situation. Qatar has announced plans for further expansion of its North Field project this year, reinforcing its position as one of the world’s leading LNG exporters.

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