Shell, TotalEnergies, Mitsui in talks with ADNOC to invest in UAE’s LNG export project

Shell, TotalEnergies, and Mitsui & Co. are in discussions to invest in Abu Dhabi National Oil Co.’s (ADNOC) upcoming LNG export project in the UAE. A final investment decision on the project could happen as soon as next month.

According to sources who spoke with Bloomberg, ADNOC may proceed with the project independently if necessary, indicating no immediate need for external investment.

The UAE aims to boost its LNG presence amidst growing global demand, despite forecasts suggesting a peak in gas demand by 2030, as seen by the International Energy Agency.

This move aligns with the broader regional trend, with Saudi Arabia and Qatar also expanding their LNG capacities.

LNG Trading

The UAE is enhancing its position in LNG trading, capitalising on market volatility post-Russia’s war in Ukraine.

Shell and TotalEnergies lead in trading, benefiting from this instability.

Meanwhile, European demand surged due to dwindling Russian supplies, prompting the UAE to expand its LNG exports.

ADNOC’s Ruwais project, fully owned, will double UAE’s output, with 9.6 million tons annually. Preliminary and final supply agreements are in place, nearing a final investment decision.

ADNOC LNG’s Das Island facility, with a 5.8 million-ton capacity, involves Adnoc, Mitsui, BP, and TotalEnergies. This expansion aims to position the UAE as a significant supplier and trader in the LNG market.