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ADNOC Moves Ahead With Huge LNG Export Project in UAE

Abu Dhabi’s national oil company ADNOC has taken the final investment decision to move forward with the Ruwais LNG project, which will more than double the existing LNG production capacity in the United Arab Emirates.

ADNOC took on Wednesday the FID for the Ruwais LNG project, which will consist of two 4.8 million metric tons per annum (mmtpa) LNG liquefaction trains with a total capacity of 9.6 mmtpa. This would more than double ADNOC’s existing UAE LNG production capacity to around 15 mmtpa, as the company builds its international LNG portfolio.   

The project, located in Al Ruwais Industrial City in the Al Dhafra region of Abu Dhabi, will be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the world’s lowest-carbon intensity LNG plants, ADNOC says.

The UAE state energy giant also awarded on Wednesday an Engineering, Procurement, and Construction (EPC) contract for the project valued at approximately $5.5 billion (20.2 billion UAE dirhams).

ADNOC has been betting big on LNG in recent months, seeking to expand its domestic production and export capacity and buying minority stakes in LNG projects overseas, including in the United States.

Last month, ADNOC bought an 11.7% stake in Phase 1 of NextDecade’s Rio Grande LNG export project in Texas, announcing its first strategic investment in the U.S.

Rio Grande LNG near Brownsville, Texas, is the first U.S. LNG project offering expected emissions reduction of more than 90% through its proposed carbon capture and storage (CCS) project, ADNOC noted.

ADNOC has also signed a 20-year LNG offtake agreement from Rio Grande LNG Train 4 with NextDecade.

The Abu Dhabi group also announced last month the acquisition of a 10% interest in an LNG project offshore Mozambique as it continues to expand its international natural gas operations. 

By Charles Kennedy for Oilprice.com

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