ADNOC ceding stake in huge LNG project to subsidiary for $5 billion

Abu Dhabi National Oil Company (ADNOC) intends to transfer its entire stake in the low-carbon Ruwais liquefied natural gas (LNG) project, currently under development in the United Arab Emirates (UAE), to its affiliate ADNOC Gas.

The transfer of ownership is expected to take place in the second half of 2028 for an estimated amount of approximately $5 billion. This deal is set to push ADNOC Gas’ operated LNG processing capacity to 15.6 mtpa, more than double what it currently processes. 

Dr. Ahmed Mohamed Alebri, CEO of ADNOC Gas, 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.”

The announcement follows ADNOC Gas’s reporting strong Q3 results and the board’s approval of its updated growth strategy. The firm’s CEO shared that his company plans to invest $15 billion in CAPEX in projects over the next five years, which will enable it to capitalize on the projected increase in domestic and global demand for lower carbon gases.

ADNOC Gas is already managing the construction and design of Ruwais LNG in Al Ruwais Industrial City, Abu Dhabi, and leading the marketing of its LNG volumes. The project will comprise two 4.8 mmtpa LNG liquefaction trains with a total capacity of 9.6 mmtpa. The first is expected to come on stream in the second half of 2028 and the second in early 2029. 

Over 7 mtpa of the project’s total production capacity has already been committed to international customers, including most recently Japan’s Osaka Gas and Germany’s Securing Energy for Europe (SEFE). According to the UAE giant, the Ruwais LNG will be one of the lowest-carbon-intensity LNG plants in the world once completed.

A final investment decision (FID) for the Ruwais LNG project was taken in July, which is also when an engineering, procurement, and construction (EPC) contract, valued at over $5.5 billion, was announced.

Energy majors Mitsui & Co, Shell, BP, and TotalEnergies came on board as partners also in July, each taking a 10%-interest in the project.