- Global energy giants Shell Plc and TotalEnergies SE, along with Mitsui & Co., are in discussions to acquire stakes in Abu Dhabi National Oil Co.'s upcoming liquefied natural gas (LNG) export venture in the UAE. Sources familiar with the matter revealed that these companies are not only eyeing equity in the Ruwais facility but are also negotiating contracts to purchase LNG from it. A final investment decision on the project is anticipated as early as next month, although the information remains confidential.
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Adnoc, the state-owned oil company, may proceed with the project independently without requiring investments from energy firms, and it may opt not to sell equity, according to insider sources. Both Adnoc and Shell declined to comment on the matter, while Mitsui stated that no decision had been made at present. TotalEnergies did not immediately respond to requests for comment. In the Middle East, the prominence of gas is on the rise, driven by robust demand and its potential as a transitional fuel towards cleaner energy sources. The UAE and Saudi Arabia are expanding their gas capacities, aligning with Qatar's ambitious LNG production expansion plans. However, this trajectory contrasts with forecasts from the International Energy Agency, which predicts a peak in gas demand by 2030.
Why it matters
Amidst these shifts, the Ruwais LNG project, set to double the UAE's LNG output, emerges as a significant development, signaling the country's ambitions in both supply and trading of LNG.
