Adnoc advances Ruwais LNG project with early contract

Adnoc handed out an early engineering, procurement, and construction contract for its Ruwais liquefied natural gas (LNG) project,according to a press release. The Limited Notice to Proceed award was issued to a JV between engineering companies Technip Energies and JGC Corporation, and National Marine Dredging Company subsidiary National Petroleum Construction Company.

ICYMI: Adnoc is planning to reach a final investment decision on the Ruwais project in 1H 2024, Bloomberg previously reported. Adnoc will use its own funds to expand production, the business information service said at the time.

More about the JV:The JV was established back in July 2022 to accelerate the UAE’s transition to clean energy. It offers services in blue and green hydrogen, related decarbonization projects, and industrial projects in the fields of waste-to-energy, biorefining, and biochemistry.

Adnoc is readying to export: The company plans to start exporting from the Ruwais site in 2028.The project is expected to more than double Adnoc’s LNG production capacity from 6 to 15 mn metric tons per annum. Adnoc previously awarded a USD 400 mn contract to US oil field service company Baker Hughes in October 2023 for the supply of essential long leads, and noted that early civil works on the site have already commenced.

Ramping up LNG agreements: Adnoc 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. The company also inked LNG export agreements valued between USD 9.4-12 bn in 2023, including a 14-year LNG supply agreement with the Indian Oil Corporation, a three-year agreement with Total Energies, and a five-year agreement with Japan Petroleum Exploration.