More LNG for Adnoc? We have two pieces of news from Abu Dhabi National Oil Company (Adnoc) indicating an increasing interest in expanding liquefied natural gas (LNG) production and exports.

#1- Adnoc is reportedly in talks over an offtake agreement from sustainable liquefied natural gas (LNG) producer NextDecade for the fourth unit of its USD 18 bn Rio Grande LNG facility in Texas, Reuters reports, citing sources who are familiar with the matter. It’s not clear whether Adnoc is in talks for a sale and purchase agreement or an equity stake, or both, the sources said.

Adnoc is not alone in eyeing US’ LNG:Saudi Arabia’s state-owned oil firm Aramco is also eyeing an investment in the second phase of NextDecade’s Texas Port Arthur project that could help expand the facility’s operations by adding a second unit.

#2- The state-owned oil giant is planning to reach a final investment decision on its Ruwais liquified natural gas (LNG) project in 1H 2024, Bloomberg reports, citing people it says are familiar with the plan. Adnoc is planning to use its own funds to expand production, the business information service said. The company plans to start exporting from the Ruwais site, which is set to double LNG export capacity, in 2028.

Background: Adnoc recently inked agreements with China's ENN Natural Gas and Gail India for a supply of at least 1.5 mn metric tons per year of LNG from the new plant.

ICYMI- Adnoc has been ramping up LNG agreements: Adnoc inked LNG export agreements valued between USD 9.4-12 bn (AED 34.5-44 bn) in 2023,including a 14-year LNG supply agreement with the Indian Oil Corporation, a three-year agreement with Total Energies in May and a five-year agreement with Japan Petroleum Exploration in July.

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