Advantage ADNOC Gas as it plans 60% buy in Ruwais LNG plant

Dubai: In another intra-Group transaction, ADNOC Gas will acquire ADNOC’s entire 60% stake in the Ruwais Liquified Natural Gas (LNG) plant, a deal that will go through in the second-half of 2028 on a cost basis.

The 60% stake is estimated at around $5 billion. ADNOC Gas is managing the construction and design of Ruwais LNG, as well as leading the marketing of LNG volumes. Over 7 mtpa of the project’s total production capacity of 9.6 mtpa has already been committed to overseas customers.

In July last, ADNOC confirmed Mitsui & Co., Shell, bp, and TotalEnergies as equity partners in Ruwais LND, each with 10%. (In another intra-Group deal, ADNOC formally bought out the stake held by OCI in its fertilizer enterprise Fertiglobe in October.)

Ruwais LNG will more than double ADNOC Gas’ operated LNG processing capacity to a substantial 15.6 mtpa, with forecasts suggesting that there will continue to be a growing demand in the global energy markets.On ADX, the stock has shot up 1.2% in the first 45 minutes of trading, to Dh3.38.

“It has always been our intention to acquire ADNOC’s 60% stake in Ruwais LNG,” said Dr Ahmed Mohamed Alebri, CEO of ADNOC Gas. “This investment is a central component of our ambitious international growth plans and will strengthen ADNOC Gas’ position as a powerhouse in the global LNG market.”

$15 billion outlay
In fact, in the next five years, the company plans to invest $15 billion on capex in ‘projects which will enable us to capture opportunities from the forecast increase in domestic and global demand for the lower carbon gases we produce’.

What Ruwais LNG will offer
Once it enters its portfolio, the Ruwais LNG plant more than doubled ADNOC Gas’ gross 6 mtpa LNG capacity operated from Das Island to 15 mtpa plus. It will have two electrically powered liquefaction trains, each with a processing capacity of 4.8 mtpa – a first for the Middle East and North Africa region. (When completed, Ruwais LNG will be ‘one of the lowest-carbon intensity LNG plants in the world’.)

The first of the plant’s two trains should come on stream in H2-2028 and the second by early 2029. “Over any given year, the facility will be able to produce enough LNG to power every home in the Greater London area for more than two years,” said a statement.

In the first none-months 2024, ADNOC Gas revenues came to $18.36 billion and which in turn led to a net income of $3.62 billion.