ADNOC awards $5.5 billion of contracts for Ruwais LNG plant

Deals for LNG from Ruwais, expected to be operational by late 2028, were signed with Germany's EnBW and Securing Energy for Europe (SEFE), as well as China's ENN Natural Gas

State-owned Abu Dhabi National Oil Company (ADNOC) has awarded contracts worth $5.5 billion to build its Ruwais project which will more than double the United Arab Emirates' liquefied natural gas (LNG) output, World Energy reported citing the Abu Dhabi Media Office statement.

ADNOC, which also received the final investment decision for the project on Wednesday, awarded the engineering, procurement and construction (EPC) contracts to a joint venture led by France's Technip Energies (TE.PA), opens new tab with Japan's JGC Corporation (1963.T), opens new tab and the UAE's NMDC Group (NMDC.AD), opens new tab, the government media office said.

Some work had already begun on the plant, as the joint venture was given a "limited notice to proceed" in March. ADNOC, which expects to produce about 9.6 million metric tons per annum (mtpa) of LNG from the project, has also signed three supply agreements for its eventual output.

The state oil giant has big ambitions in gas and LNG, which along with renewable energy and petrochemicals it sees as pillars for its future growth. It currently produces around 6 mtpa of LNG and aims to lift its capacity to 15 mtpa.

As demand for natural gas spiked following Russia's invasion of Ukraine, several Gulf countries have looked to capitalise. Qatar this year announced a further expansion of its North Field project that will cement it as one of the world's top LNG exporters, while Saudi oil giant Aramco aims to boost gas output by 60% by 2030 from 2021 levels.

Supply deals for LNG from Ruwais, expected to be operational by late 2028, were signed with Germany's EnBW and Securing Energy for Europe (SEFE), as well as China's ENN Natural Gas.

ADNOC last year said the project would proceed in Al Ruwais Industrial City in Abu Dhabi's Al Dhafra region, west of the capital city, and not in the emirate of Fujairah as had been planned. The company said at the time the proximity to ADNOC's current operations and future growth projects, as well as its local supplier base, were all important factors in the decision.

It is expected to be the region's first LNG export facility to run on clean power.