According to sources, four international companies have agreed to invest in the next liquefied natural gas export project of ADNOC (Abu Dhabi National Oil Company).
The above sources stated that Shell, Total energy BP and Mitsui will each hold a 10% stake in the Ruwais LNG plant. As the information has not been made public, these sources requested anonymity. It is said that the agreement may be signed as early as next week.
Although many countries intend to shift to more eco-friendly alternative energy, energy giants are betting on the long-term demand for natural gas. Although the fuel price has fallen from its heyday two years ago, it is still at a high level, which enhances the attractiveness of new supply projects.
The United Arab Emirates currently has only 5.8 million tons of liquefied natural gas export capacity, making it the smallest producer in the region. The Ruwais plant, with an expected annual output of 9.6 million tons, will increase its production capacity to the second largest producer in the Middle East, second only to Qatar.
ADNOC decided to continue the Ruwais project and signed a construction contract worth $5.5 billion before obtaining investment from four international companies. Of the three companies - Mitsui, BP and Total Energy - are also partners in ADNOC's only existing liquefied natural gas export plant located on Das Island, UAE.
This project is part of the United Arab Emirates' efforts to promote the global liquefied natural gas market domestically and abroad. ADNOC recently signed agreements to invest in similar projects in the United States and Mozambique.