Go-ahead for ADNOC’s huge LNG project prompts $5.5 billion deal for its development

UAE’s energy giant Abu Dhabi National Oil Company (ADNOC) has made a final investment decision (FID) for its giant liquefied natural gas (LNG) project, which is envisioned as a lower-carbon intensity development powered by clean and low-carbon energy to enable the country to reach its decarbonization goals.

The endorsement of the FID for ADNOC’s Ruwais LNG development and the award of an engineering, procurement, and construction (EPC) contract for the project, valued at approximately $5.5 billion (AED20.2 billion), came from Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, who chaired a meeting of the executive committee of the firm’s board of directors.

Located in Al Ruwais Industrial City in Al Dhafra region of Abu Dhabi, this is said to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the world’s lowest-carbon intensity LNG plants and reinforcing the UAE player’s position as a reliable natural gas supplier. The plant will use electric-driven motors instead of conventional gas turbines.

Arnaud Pieton, CEO of Technip Energies, commented: “By powering electrified LNG trains with nuclear energy, this project sets a new standard for energy security and sustainability. By leveraging our low-carbon and electrified LNG leadership we will support ADNOC’s position as a reliable global natural gas supplier and commitment to decarbonization.”

The FID follows the signing of a 15-year, 0.6 mmtpa LNG supply heads of agreement for the project between ADNOC and EnBW, which was the third long-term LNG supply agreement for the project, coming after the second such supply agreement from March 2024 with SEFE and the first 15-year HOA with China’s ENN Natural Gas from December 2023.

While ADNOC issued a limited notice to proceed (LNTP) with early engineering, procurement, and construction (EPC) activities for Ruwais LNG in March 2024 to a joint venture (JV) comprising Technip Energies, JGC Corporation, and National Petroleum Construction Company (NPCC), the JV has now secured an EPC contract for the project, which will consist of two 4.8 mmtpa LNG liquefaction trains with a total capacity of 9.6 mmtpa.

This development is expected to more than double ADNOC’s existing UAE LNG production capacity to around 15 mmtpa, leveraging artificial intelligence (AI) and the latest technologies to enhance safety, minimize emissions, and drive efficiency. According to ADNOC, 55% of the EPC award value is set to flow back into the UAE’s economy under the firm’s In-Country Value (ICV) program, stimulating economic and industrial growth and skilled private-sector jobs.

Recently, the UAE giant has taken steps to expand its global LNG footprint by investing in major lower-carbon LNG projects in the United States (US) and Mozambique. ADNOC is working on using its portfolio of low-carbon energy to power the growth of AI while accelerating the integration and deployment of AI solutions across its value chain to unlock further value, bolster operations safety, and lower emissions.

Ahmed Al Dhaheri, CEO of NMDC Energy, remarked:  “Utilizing nuclear energy for LNG production not only sets a new international standard for low-emission energy but also aligns with the UAE’s strategy for a sustainable future.”