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  • Updated: April 23, 2024

Shell, TotalEnergies in negotiations over stake purchases in UAE's Ruwais LNG project

Shell, TotalEnergies in negotiations over stake purchases in

UAE's Ruwais LNG project

International oil and gas companies, including Shell and TotalEnergies, are currently engaged in negotiations to acquire stakes in the United Arab Emirates (UAE) new LNG export project, sources familiar with the matter revealed to Bloomberg on Tuesday.

The project, named Ruwais LNG, is being developed by the UAE's state-owned firm ADNOC and is slated to feature two liquefaction trains with a combined capacity of 9.6 million metric tonnes per annum (mmtpa).

The endeavour aims to significantly boost ADNOC's LNG production capacity, surpassing its current output from the sole LNG project at Das Island.

Last month, ADNOC inked a deal with Germany's state-controlled firm Securing Energy for Europe (Sefe) for a 15-year LNG supply agreement starting in 2028.

The finalization of the LNG agreement hinges on a final investment decision (FID) on the Ruwais LNG project, regulatory approvals, and the negotiation of a definitive Sales and Purchase Agreement between ADNOC and potential investors.

According to sources cited by Bloomberg, the FID for the Ruwais LNG project could occur as early as May this year.

ADNOC announced last month that the Ruwais LNG project would be the first in the Middle East and North Africa region to operate on clean power, positioning it as one of the lowest carbon-intensity LNG plants globally.

While ADNOC has asserted that it does not require financial backing from external companies for the Ruwais LNG project, sources suggest that the firm may consider selling stakes in the venture.

The UAE, along with Saudi Arabia and Qatar, is intensifying its presence in the global LNG market, with Qatar planning significant expansion projects to raise its total LNG export capacity by 85% by 2030.

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