Categories: Company News

Shell, BP, TotalEnergies, and Mitsui Commit to 10% Stake Each in Ruwais LNG Plant

Four international energy giants, Shell Plc, BP Plc, TotalEnergies SE, and Mitsui & Co., have each agreed to invest in Abu Dhabi National Oil Co.’s (Adnoc) latest liquefied natural gas (LNG) export project, the Ruwais LNG plant.

According to sources familiar with the matter, these companies will each take a 10% stake in the new facility, which is poised to substantially boost the UAE’s LNG export capacity.

The official agreements are expected to be signed as early as next week.

However, the sources, who requested anonymity due to the non-public nature of the information, confirmed the investment details.

The Ruwais LNG plant, set to enhance the UAE’s standing in the global LNG market, will add 9.6 million tons per year to the nation’s export capacity.

Currently, the UAE has the smallest LNG export capacity in the region at 5.8 million tons.

This project will position it as the second-largest LNG exporter in the Middle East, surpassed only by Qatar.

Adnoc’s decision to proceed with the Ruwais project, backed by a $5.5 billion construction contract, came before securing these international investments.

Three of the investors—Mitsui, BP, and TotalEnergies—are already partners in the UAE’s only existing LNG export facility on Das Island.

This new project aligns with Adnoc’s strategy to expand its footprint in the global LNG market, not only within the UAE but also through international ventures, including recent deals in the US and Mozambique.

Musabbeh Al Kaabi, Adnoc’s executive director for international growth, emphasized the company’s strategic focus areas, saying, “We’ve made it very clear that we’re interested in key sectors when it comes to low carbon solutions, renewables, natural gas, and chemicals.”

The investment in Ruwais underscores the continuing appeal of natural gas projects, even as global energy markets face increasing pressures to transition to greener alternatives.

With fuel prices remaining elevated, the appeal of new supply projects remains strong, providing a crucial boost to the global energy market.

The commitment of Shell, BP, TotalEnergies, and Mitsui to the Ruwais LNG project not only marks a significant milestone for Adnoc but also highlights the robust international interest in the UAE’s ambitious energy expansion plans.

As the world navigates the complexities of energy transition, these investments underscore the enduring role of natural gas as a vital component of the global energy mix.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

Dollar to Naira Black Market Exchange Rate Today, 22nd January 2025

The dollar to naira exchange rate continues to be a focal point in Nigeria's financial…

8 hours ago

Pounds to Naira Black Market Exchange Rate Today, 22nd January 2025

The pounds to naira exchange rate continues to be a critical topic in Nigeria’s financial…

8 hours ago

MTN Nigeria Secures NCC Approval to Renew and Harmonise 800MHz Spectrum Licences

MTN Nigeria Communications PLC has received approval from the Nigerian Communications Commission (NCC) to renew…

13 hours ago

CAC Strengthens Compliance and Enforcement Responsibilities, Targets Business Formalization

The Corporate Affairs Commission (CAC) has outlined plans to enhance its compliance and enforcement responsibilities,…

14 hours ago

Nigeria Could Generate Over $2 Billion from Carbon Market by 2030 – UNN

The University of Nigeria, Nsukka (UNN), has projected that Nigeria could earn over $2 billion…

14 hours ago

Trump Restricts Citizenship Rights for Babies of Undocumented Parents

President Donald Trump has signed an executive order titled “Protecting the Meaning and Value of…

19 hours ago