Shell, Total, BP secure stakes in UAE gas venture
Date
7/18/2024 8:46:42 AM
(MENAFN) Several major energy players, including Shell, Total, BP, and Mitsui & Co., have secured stakes in Abu Dhabi's ambitious Ruwais LNG project. This initiative, spearheaded by the Abu Dhabi National Oil Company (ADNOC), marks a significant expansion in the UAE's liquefied natural gas (LNG) production capacity. Scheduled to commence operations in 2028, the Ruwais plant is poised to produce approximately 9.6 million metric tonnes per annum (mtpa), effectively doubling ADNOC's current LNG output capabilities.
ADNOC retains a majority 60 percent stake in the project, which aims to operate as one of the world's most environmentally friendly LNG facilities by leveraging nuclear power for its operations. ADNOC's Chief Executive, Sultan Al Jaber, emphasized the plant's commitment to low-carbon intensity, positioning it as a key player in the global effort to mitigate climate change.
In addition to securing investments from Shell, Total, BP, and Mitsui & Co., ADNOC has finalized several long-term LNG sales agreements with international partners. Notably, Shell and Mitsui & Co. have committed to purchasing significant portions of Ruwais's production capacity, further solidifying the project's viability and market reach. This strategic move comes amid heightened global demand for cleaner energy alternatives following geopolitical shifts, including Russia's impact on global gas markets.
The United Aarab Emirate's initiative parallels Qatar's recent announcement to expand output from its vast natural gas reserves, reflecting a broader regional strategy to enhance energy production capabilities amidst evolving geopolitical and environmental dynamics. As countries worldwide prioritize emissions reduction and sustainable energy solutions, projects like Ruwais highlight the pivotal role of LNG in the global energy transition.
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