Shell Overseas Holdings has signed an agreement to buy 10 percent stake in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais liquefied natural gas (LNG) project in Abu Dhabi.
“This investment decision builds on our partnership with ADNOC,” said Shell’s Chief Executive Officer Wael Sawan. “In line with our strategy to create more value with less emissions, we are investing in additional LNG capacity and further growing our world-leading LNG portfolio, with energy-efficient and carbon-competitive projects.”
The Ruwais LNG project will consist of two 4.8 million metric tonnes per annum (mmtpa) LNG liquefaction trains with a total capacity of 9.6 mmtpa.
Shell International Trading Middle East has signed an agreement to offtake 1 mmtpa of LNG produced by the project. The Ruwais LNG facility is set to have an electric-powered liquefaction system and will utilise access to a renewable power supply. This design supports lower operational emissions compared to traditional gas-powered LNG facilities.
ADNOC will hold a majority 60 percent share in the project and serve as the lead developer and operator of the facility, while Shell, BP, Mitsui and TotalEnergies will each hold 10 percent.
ADNOC has awarded an engineering, procurement and construction (EPC) contract to a Technip-led joint venture and will soon start construction in Al Ruwais Industrial City, Abu Dhabi. LNG deliveries are expected to start in 2028.
The Ruwais LNG project is located some 240 kilometres west of Abu Dhabi, United Arab Emirates.
Shell’s current activities with ADNOC include a 15 percent interest in ADNOC Gas Processing (AGP) with associated technical and manpower support services.
The capital investment related to Shell’s 10 percent stake in the Ruwais LNG project will be absorbed within Shell’s cash capital expenditure guidance.