ADNOC Gas is set to acquire a 60% stake in the Ruwais liquified natural gas (LNG) plant from ADNOC at an estimated cost of $5bn (Dh18.36bn) by the second half of 2028 (H2 2028).
The acquisition is part of ADNOC Gas’ strategy to expand its LNG capacity and enhance its presence in the global LNG market.
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Currently, ADNOC Gas is managing the design and construction of Ruwais LNG on behalf of the ADNOC Group.
The plant will more than double ADNOC Gas’ existing LNG capacity from six million tonnes per annum (mtpa) to more than 15mtpa.
The facility will have two electrically powered liquefaction trains, each with a processing capacity of 4.8mtpa, a first in the Middle East and North Africa region.
The Ruwais LNG plant is expected to be one of the lowest-carbon intensity LNG plants globally. The first train is expected to come online in H2 2028, with the second following in early 2029.
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By GlobalDataThe facility will utilise AI and advanced digital technologies to enhance safety, minimise emissions and improve efficiency.
ADNOC Gas CEO Ahmed Mohamed Alebri said: “It has always been our intention to acquire ADNOC’s 60% stake in Ruwais LNG. This investment is a central component of our ambitious international growth plans and will strengthen ADNOC Gas’ position as a powerhouse in the global LNG market.
“Over the next five years we plan to invest $15bn in capex [capital expenditure] in projects, which will enable us to capture opportunities from the forecast increase in domestic and global demand for the lower-carbon gases we produce.”
ADNOC Gas reported strong earnings for the third quarter of 2024, with net income rising 11% year-on-year to $1.24bn.
The company plans to increase capex from $13bn to $15bn between 2025 and 2029, aiming for more than 40% growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) by 2029.
The company’s focus will be on developing three large projects: the Maximisation of Ethane Recovery and Monetisation project, the IGD-E2 project and Ruwais LNG.
The updated growth strategy includes advancing design and concept studies for large-scale pre-final investment decision (FID) projects to expand gas processing capabilities.
This expansion aligns with ADNOC’s increased upstream production capacity and the Bab Gas Cap project, expected to be completed post-2029.
In June, ADNOC announced an FID on the Ruwais LNG project including a $5.5bn-plus engineering, procurement and construction contract.
In July, ADNOC welcomed Mitsui & Co, Shell, bp and TotalEnergies as equity partners in the project, with each holding a 10% stake.
