ADNOC Gas plans to take majority stake in Ruwais LNG project for $5bn

ADNOC Gas, an affiliate of the Abu Dhabi National Oil Company (ADNOC), is set to expand its reach in the global liquefied natural gas (LNG) market through a $5 billion acquisition of ADNOC’s 60% stake in the Ruwais LNG project. Scheduled for completion by the second half of 2028, this acquisition reinforces ADNOC Gas’s mission to strengthen its foothold in international LNG production, responding to the rising demand for cleaner energy sources.

The company has confirmed that this transfer will occur “at cost,” meaning ADNOC Gas will pay only the actual expenses ADNOC incurred, foregoing additional profit. Currently, ADNOC Gas manages the construction and design of Ruwais LNG and has already secured commitments from international clients for 7 mtpa of its projected 9.6 mtpa production capacity.

ADNOC Gas CEO Dr. Ahmed Mohamed Alebri has underscored the acquisition as a core component of the company’s strategic plans. Dr. Alebri emphasized that ADNOC Gas’s focus on bolstering its global LNG presence aligns with its ambition to be a leader in the low-carbon energy sector. Over the next five years, ADNOC Gas aims to invest $15 billion in CAPEX for projects anticipated to meet both local and global demand for low-carbon gases, underscoring the Ruwais LNG plant’s pivotal role in these plans.

Once operational, Ruwais LNG will elevate ADNOC Gas’s LNG production capacity from its current 6 mtpa at Das Island to over 15 mtpa, with two electrically powered liquefaction trains—a first for the MENA region—each producing 4.8 mtpa. The facility is expected to rank among the lowest carbon-intensive LNG plants worldwide, integrating artificial intelligence (AI) and advanced digital technologies to improve safety, efficiency, and emission reduction.

The Ruwais LNG plant’s construction reached a significant milestone in June with ADNOC’s Final Investment Decision (FID), which included a $5.5 billion Engineering, Procurement, and Construction (EPC) contract. In July, global energy giants Mitsui & Co., Shell, bp, and TotalEnergies acquired a 10% stake each in the project, reflecting widespread international support and investment in the venture.

ADNOC Gas recently converted a previous Heads of Agreement with SEFE into a binding 15-year Sales and Purchase Agreement (SPA) with SEFE Marketing and Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH. The SPA guarantees the supply of 1 mtpa of LNG, primarily sourced from Ruwais, beginning in 2028, when the facility is set to commence commercial operations.

In total, ADNOC Gas has secured commitments for over 7 mtpa of the Ruwais LNG plant’s production capacity through multiple long-term contracts with international clients. These agreements underscore the global demand for LNG output from Ruwais, positioning ADNOC Gas as a formidable player in the international LNG market.

Expert Insight: A Critical Expansion for ADNOC Gas

Energy analysts view the Ruwais LNG project as a transformative step for ADNOC Gas, solidifying its role in the MENA region and positioning it favorably in the global LNG market. The plant’s reliance on electrically powered liquefaction, a regional first, is expected to set new benchmarks in emissions reduction and operational efficiency.

According to industry experts, this project not only represents a strategic investment in infrastructure but also aligns with ADNOC Gas’s commitment to supporting global energy transitions. With partnerships from established players like Shell, bp, and TotalEnergies, ADNOC Gas has fortified its financial and operational framework to meet expanding LNG demand.

The Ruwais facility’s low carbon intensity, coupled with its commitment to AI-enhanced safety and efficiency, is seen as a forward-thinking approach that may serve as a model for future LNG projects globally.