Adnoc of the United Arab Emirates has made a final investment decision to build its liquefied natural gas (LNG) export terminal at Al Ruwais. Adnoc has also awarded the $5.5 billion EPC contract to a joint venture led by France’s Technip Energies.
The state-owned company made the announcement in a statement issued on Wednesday following a meeting of the executive committee of its board of directors.
Adnoc also confirmed the decision and award of the $5.5 billion contract to LNG Prime.
In addition to Technip Energies, the JV includes Japan’s JGC and the UAE’s NMDC Energy.
Adnoc issued a limited notice to proceed for early engineering, procurement and construction activities to the joint venture in March this year.
In addition to this EPC contract, Adnoc Gas, Adnoc’s gas and LNG unit, has also awarded a contract for the LNG export terminal to US energy services company Baker Hughes.
Baker Hughes will supply two electric liquefaction systems (e-LNG) for the Ruwais LNG project.
The LNG project will consist of two 4.8 mtpa trains with a total capacity of 9.6 mtpa, more than doubling Adnoc’s existing LNG production capacity in the UAE to approximately 15 mtpa as the company builds its international LNG portfolio.
Adnoc currently owns a 70 percent stake in Adnoc LNG, which currently produces approximately 6 mtpa of LNG from its facilities on Das Island.
Ruwais LNG Deals
Last month, Adnoc signed a heads of agreement with Germany’s EnBW to supply it with LNG from its Al Ruwais LNG terminal.
Under the terms of the agreement, EnBW will purchase 0.6 mtpa of LNG for a period of 15 years.
Deliveries, which will be sourced primarily from the Ruwais LNG plant, are expected to commence in 2028, when the plant begins commercial operations.
This is the third long-term LNG supply agreement from the Ruwais LNG project, following the 15-year agreement with Germany’s SEFE signed in March this year and the 15-year agreement with China’s ENN Natural Gas signed in December 2023.
The agreements with SEFE and ENN are for 1 mtpa each, meaning that Adnoc has signed