Adnoc to build new low-carbon LNG plant in Ruwais

The plant will run on renewable and nuclear grid power, company says

Ruwais is at the centre of Adnoc’s downstream ambitions. Photo: Adnoc

Adnoc has said its planned low-carbon liquefied natural gas project will move forward in Al Ruwais Industrial City in Abu Dhabi.

The proximity of Ruwais to Adnoc's current and future projects, as well as its established supplier base, were key factors in the decision, the state-run energy company said on Tuesday.

“As an operational hub for Adnoc and its operating companies, the selected location offers significant synergies and existing infrastructure that will be leveraged to deliver project efficiencies,” the company said.

The Ruwais plant, which is designed with electric-powered processing facilities, will run on renewable and nuclear grid power, making it one of the lowest carbon intensity LNG projects in the world, Adnoc said.

Ruwais, which is at the centre of Adnoc’s downstream ambitions, has been earmarked for a multibillion-dollar expansion that will expand its refining capacity to 1.5 million barrels per day by 2025, making it the largest refiner in terms of capacity.

Adnoc Gas, a unit of Adnoc, has access to 95 per cent of the UAE's natural gas reserves, estimated to be the seventh largest globally. It also supplies more than 60 per cent of the country's gas needs.

On Monday, Adnoc Gas signed a three-year supply agreement with TotalEnergies Gas and Power, a subsidiary of France’s TotalEnergies, to export LNG.

Europe, which is looking to reduce its reliance on Russian gas, has been boosting LNG imports from the US and the Gulf.

In February, Adnoc and German power company RWE announced the delivery of the first shipment of the supercooled fuel from the UAE to Germany.

In November, QatarEnergy signed two sales and purchase agreements with US oil and gas producer ConocoPhillips to deliver up to two million tonnes per annum (mtpa) of LNG to Germany.

Global LNG trade reached a high of $450 billion in 2022 amid a surge in European demand as the region reduced its reliance on Russian gas imports, according to the International Energy Agency.

Despite a rise in demand, LNG supply grew only 5.5 per cent last year, mostly due to maintenance at large export terminals and as Freeport LNG’s Texas-based plant — one of the world’s largest export centres of the supercooled fuel — was shut down after a fire in June 2022.