Table of Contents
Project at a Glance | |
|---|---|
Project name | Ruwais LNG project |
Project type | Greenfield |
Project sector | Liquefied Natural Gas |
Project location | Abu Dhabi, UAE |
Project cost | USD 5 billion |
Project operator | Abu Dhabi National Oil Company (ADNOC) |
Project start date | 2028 |
Project completion date | 2048 |
Project status | Under development |
Project Overview
The Ruwais Liquefied Natural Gas (LNG) project is in AI Ruwais Industrial City, Abu Dhabi. It will be the first LNG export facility in the Middle East and North Africa (MENA) region to operate on clean power. It is a low-carbon facility and will use Artificial Intelligence, digitalization, and cutting-edge technology to boost productivity and safety throughout the plant.
The project includes two Liquefaction trains and a total export capacity of 9.6 Mtpa (Million Tonnes per Annum). The Ruwais LNG terminal will more than double ADNOC’s LNG production capacity to 15 Mtpa by 2028. For this purpose, Abu Dhabi National Oil Company (ADNOC) will invest USD 13 billion in its hometown and abroad for the next five years.
The increased production capacity will help meet the growing demand for natural gas globally. Yearly, the facility will produce sufficient LNG to power every home in London for approximately two years.
Project Background
The Ruwais LNG project is a revised version of the Fujairah export LNG terminal. In May 2023, ADNOC declared that it would move the Fujairah terminal project to AI Ruwais Industrial City.
The transfer is due to the accessibility of AI Ruwais to existing ADNOC operations, infrastructure, and future projects. The other reason for the project transfer is to optimize the cost and leverage existing infrastructure.
ADNOC expects the move to enable it to become a self-sufficient gas supplier, and Ruwais LNG will be a critical part of that plan.
The project involves two 4.8 Mtpa Liquefaction trains with a total capacity of 9.6 Mtpa. The Ruwais LNG facilities will operate on electric, nuclear, and renewable energy. It would be the first LNG export facility to run on clean energy in the Middle East and North Africa (MENA).
As the new project is released, ADNOC plans to more than double its production capacity to meet the emerging global demand for LNG.
In June 2024, ADNOC announced that FID had been taken for the AI Ruwais Terminal. It awarded a USD 5.5 billion engineering, procurement, and construction (EPC) contract to the joint venture led by Technip Energies with JGC Corporation and NMDC Energy.
Project Scope
The Ruwais LNG project, under construction by ADNOC Gas Company, develops the LNG export facility in Abu Dhabi. The project scope includes the following:
Clean energy merger: The use of electric-driven motors driven by clean energy sources will replace conventional gas turbines. It will be the first LNG export plant in the MENA region to operate on clean power.
Technical development: The Ruwais terminal uses Artificial Intelligence (AI) and advanced technologies to improve operational efficiency and reduce emissions.
Infrastructure development: It includes the development of feed gas facilities, LNG storage tanks, and export terminals with the motive of helping the liquefaction process and distribution.
Feeder pipelines: New pipelines will be installed to connect the Habshan complex five plants to the Ruwais LNG plant for the smooth delivery of feed gas.
Scouring and Marine Access: Carrying out the dredging function involves the removal of around 15 million cubic meters of material to create a 5km long and 245 meters wide channel. LNG carriers will be able to access the sea more easily this way.
Export terminal facilities: The export jetty will be developed to load LNG cargo and bunkers.
Ruwais Project Location
The Ruwais LNG project is located in AI Ruwais Industrial City, Abu Dhabi. Initially, the project was built in Fujairah. However, in May 2023, ADNOC decided to transfer the project to AI Ruwais Industrial City in Abu Dhabi due to its proximity to existing ADNOC operations and infrastructure.
Ruwais Project Cost
The expected cost of the Ruwais LNG project is approximately USD 5 billion. With this cost, ADNOC Gas plans to acquire a 60% stake in the project from ADNOC by the end of 2028. The project includes another EPC contract of USD 5.5 billion awarded to a consortium led by Technip Energies, with partners JGC Corporation and NMDC Energy.
Further, to double the LNG production capacity, the Abu Dhabi National Oil Company (ADNOC) will invest USD 13 billion in its hometown and abroad between 2024 and 2029.
Ruwais LNG FID
The ADNOC has taken its final investment decision (FID) for the new LNG terminal at AI Ruwais, Abu Dhabi, in June 2024. The company has awarded an engineering, procurement, and construction (EPC) contract of USD 5.5 billion to a consortium led by Technip Energies, with partners JGC Corporation and NMDC Energy.
The project will also utilize AI and advanced technologies to boost safety, reduce emissions, and improve operational efficiency.
ADNOC Gas acquired a 60% stake in the Ruwais LNG
On 11th November, 2024, ADNOC Gas announced that it expects to acquire ADNOC’s 60% stake in the Ruwais LNG plant in the second half of 2028. ADNOC will transfer a 60% stake of the Ruwais LNG project to the ADNOC Group at an estimated cost of around USD 5 billion in the second half of 2028. ADNOC Gas is managing the construction and design of the Ruwais project on behalf of the ADNOC Group. Out of the total capacity of 9.6 Mtpa, nearly 7 Mtpa has already been committed to international customers.
The project expands its production capacity to 15 Mtpa. It includes two liquefaction trains, each providing 4.8 Mtpa LNG. The first liquefaction train will operate in 2028, and the second in 2029.
Ruwais LNG EPC
On 8th January 2025, CB&I was awarded a lump-sum contract worth half a billion dollars for the Abu Dhabi National Oil Company's Ruwais LNG project in the United Arab Emirates.
The TJN Ruwais joint venture was awarded the engineering, procurement, and construction (EPC)of two cryogenic tanks and associated civil, structural, mechanical, and piping work for the LNG project. TJN is a joint venture between Technip Energies, JGC Corporations, and NMDC Energy.
The role of CB&I is to deliver two 180,000-cubic-meter full containment concrete LNG tanks, along with all piping and civil infrastructure. The construction for this will begin in November 2025 and is expected to be completed by 2028.
Ruwais LNG Project Investors
Investors | Investment share |
Abu Dhabi National Oil Company (ADNOC) | 60% |
Shell | 10% |
TotalEnergies | 10% |
BP | 10% |
Mitsui & Co. | 10% |
Ruwais Project Contractors
Contractors | Role | Contract value |
Technip Energies, JGC Corporation, NMDC Energy | EPC contract for LNG facility. It includes two liquefaction trains operated by clean power. | USD 5.5 billion |
CB&I | Deliver two 180,000-cubic-meter full containment concrete LNG tanks with piping and civil infrastructure. | USD 250-500 million |
ENPP & Petrojet | Construct LLP, compression facilities, and transmission pipelines to supply feedstock. | USD 1.24 billion |
NMDC Group | Marine dredging operations and the installation of navigational aids. | USD 200 million |
Ruwais LNG Project Awarded
The ADNOC Gas Awards are worth a USD 2.1 billion contract to enhance LNG supply infrastructure. It awarded three contracts for the infrastructure work that delivers gas to the Ruwais Project.
On 9th January 2025, ADNOC Gas, a leading integrated gas processing company, announced the awarding of three sanction contracts worth USD 2.1 billion for a Liquefied Natural Gas pre-conditioning Plant (LLP), compression facilities, and transmission pipelines to supply feedstock to the Ruwais LNG project.
The LLP and compression facilities will be fixed within ADNOC Gas’s Habshan 5 plant. The plant has a combined capacity to produce 6.1 billion standard cubic feet of gas daily. The transmission pipelines will connect the Habshan Complex with the Ruwais LNG facility.
The three contracts by the ADNOC Gas company are discussed below:
The largest contract for the LLP is worth USD 1.24 billion and was awarded to the engineering consortium for the Petroleum and Process Industries (ENPPI) project. Another contract was awarded to the China Petroleum Pipeline Engineering Company, worth USD 514 million. The Petrofac Emirates LLC was awarded for developing new compression facilities at USD 335 million.
These contracts will build the key infrastructure required to supply feedstock to the Ruwais LNG facility. This contract investment is a part of the USD 15 billion CAPEX plan by 2029, as outlined in ADNOC Gas’s recent strategy update.
On the completion of the project, Ruwais LNG will be one of the lowest-carbon intensity LNG plants in the world, using AI and other advanced technologies to improve safety, reduce emissions, and drive efficiency.
Benefits of the Ruwais LNG
The following are the benefits of the Ruwais project.
Reduce emissions: The Ruwais LNG facility will be the first to operate on clean power. The aim is to reduce emissions and drive efficiency.
A key player in the global market: The project aims to increase the production capacity of LNG to 15 Mtpa. It will position the UAE as a key player in the global LNG market.
Foster international collaboration: The project involves investments from the prime energy companies, including Shell, BP, TotalEnergies, and Mitsui, each holding a 10% stake, fostering international collaboration.
A steady supply of LNG: ADNOC has signed many long-term agreements with international companies for the purchase and sale of LNG. It ensures a steady supply of LNG.
Conclusion
The Ruwais LNG terminal in Abu Dhabi will be the first to operate on clean power. It fosters international collaborations and ensures a steady supply of LNG. The project operator, ADNOC, plans to increase the LNG production capacity to approximately 15 Mtpa to meet the global demand for LNG.
As part of the Ruwais LNG Project, ADNOC Gas expects to acquire the company's 60% share from ADNOC at an estimated cost of USD 5 billion. ADNOC Gas manages the construction and design of Ruwais LNG on behalf of ADNOC Group. Over 7 Mtpa of the project's 9.6 Mtpa have already been committed to international customers.
Connect with decision-makers about the latest Liquefied Natural Gas Projects in Abu Dhabi for business opportunities.
Subscribe to our upcoming and ongoing Liquefied Natural Gas Projects and tender database in Abu Dhabi to access reliable, high-quality insights on forthcoming and completed natural gas projects across the country.
Our user-friendly platform provides essential details, timely updates, key stakeholder contact information, and business opportunities tailored for engineering companies, industry professionals, investors, and government agencies.
Start a free demo to take your business to the next level.
Leave a Comment
We love hearing from our readers and value your feedback. If you have any questions or comments about our content, feel free to leave a comment below.
We read every comment and do our best to respond to them all.