ADNOC Gas to Buy Stake in Ruwais LNG Plant

Abu Dhabi National Company (ADNOC) Gas, a world-class integrated gas processing company, on Monday said that it was planning to acquire 60% stake of ADNOC in the Ruwais Liquefied Natural Gas (LNG) plant in the second half of 2028 at cost of $5 billion.

ADNOC Gas expects ADNOC to transfer its 60% share of the Ruwais LNG Project to the company in the H2 of 2028, ADNOC Gas informed the Abu Dhabi Securities Exchange in a filing on Monday.

On behalf of the ADNOC Group, ADNOC Gas is managing the construction and design of Ruwais LNG, as well as leading the marketing of LNG volumes. Over 7 Million Tons Per Annum (MTPA) of the project’s total production capacity of 9.6 MTPA has already been committed to international customers.

ADNOC Gas CEO Dr Ahmed Mohamed Alebri said that his company has always been intending to acquire majority stake in ADNOC’s 60% stake in Ruwais LNG and this investment is a central component of his company’s ambitious international growth plans and will strengthen ADNOC Gas’ position as a powerhouse in the global LNG market.

“Over the next five years we plan to invest $15 billion in Capital Expenditure (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,” he added.

The Ruwais LNG plant will more than double ADNOC Gas’ current gross 6 MTPA LNG capacity operated from Das Island to reach more than 15 MTPA. It will have two electrically powered liquefaction trains, each with a processing capacity of 4.8 MTPA, a first in the Middle East and North Africa (MENA) region.

Lowest Carbon Intensity Plant

When completed, Ruwais LNG will be one of the lowest-carbon intensity LNG plants in the world and the first of the plant’s two trains is expected to come on stream in H2 2028 and the second in 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. The facility will also leverage Artificial Intelligence (AI) and other advanced digital technologies to enhance safety, minimize emissions and drive efficiency.

In June, ADNOC announced a Final Investment Decision (FID) on the Ruwais LNG project and an Engineering, Procurement, and Construction (EPC) contract, valued at over $5.5 billion. A month later, it welcomed Mitsui & Co, Shell, bp, and TotalEnergies as equity partners, each taking a 10% stake.

Q3 Financial Performance

ADNOC Gas plc and its subsidiaries also announced strong earnings for the third quarter of 2024, with net income increasing 11% y-o-y to $1.24 billion, beating Bloomberg consensus for the quarter.

The announcement of the company’s Q3 results coincides with ADNOC Gas’ Board of Directors approval of an updated growth strategy, that targets an increase of over 40% in EBITDA by 2029 and sets capital expenditure (CAPEX) of up to $15 billion for the period 2025-2029.

Dr. Ahmed Alebri said that the company’s Q3 results are a testament to their robust performance while their updated strategy support future proofing their business, aiming for over 40% EBITDA growth by 2029.