ADNOC to sell Petronas 1-million tpy of Ruwais LNG output

Abu Dhabi National Oil Co. (ADNOC) last week agreed to sell 1 million tonnes/year (tpy) of production from its 9.6-million tpy Ruwais LNG project to Malaysia’s Petroliam Nasional Berhad (Petronas) for a term of 15 years. The deal converts a previous heads of agreement between the two companies regarding the transaction to a definitive agreement. 

ADNOC is developing Ruwais LNG in Al Ruwais Industrial City, Abu Dhabi, using two 4.8-million tpy trains. More than 8 million tpy of the project’s capacity has been committed to international customers through long-term agreements. Deliveries are expected to start in 2028. 

ADNOC Gas last month said it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost (estimated $5 billion) in second-half 2028 (OGJ Online, Nov. 11, 2024). The project will double ADNOC Gas’ existing operated LNG production capacity to 15.6 million tpy.

Mitsui & Co., Shell PLC, bp PLC, and TotalEnergies SE each hold a 10% stake in the project, comprising the balance.

ADNOC says the Ruwais LNG plant will be the first LNG export site in the Middle East and Africa region to run on clean power, making it one of the lowest-carbon intensity LNG plants in the world. The company added that the plant “will leverage artificial intelligence and the latest technologies to enhance safety, minimize emissions and drive efficiency.”