ADNOC Gas Allocates $2.1 Billion To Strengthen LNG Supply Infrastructure For Ruwais Project

ADNOC Gas plc, along with its subsidiaries, has announced the awarding of three contracts worth $2.1 billion for a pre-conditioning plant, compression facilities, and pipelines. These projects aim to supply feedstock to the Ruwais LNG Project. The contracts are part of ADNOC Gas' strategy to expand its LNG capabilities and enhance shareholder value.

The largest contract, valued at $1.24 billion, was awarded to a consortium of Engineering for the Petroleum and Process Industries (ENPPI) and Petrojet for the LNG pre-conditioning plant (LPP). Additionally, China Petroleum Pipeline Engineering Company secured a $514 million contract for transmission pipelines. Petrofac Emirates LLC will handle the new compression facilities under a $335 million agreement.

The LPP and compression facilities will be situated within ADNOC Gas’ Habshan 5 plant. This plant is part of one of the world's largest integrated gas processing complexes. The Habshan Complex's five plants collectively process 6.1 billion standard cubic feet of gas daily. New pipelines will link this complex with the Ruwais LNG facility.

Fatema Al Nuaimi, CEO of ADNOC Gas, stated: "These contract awards reaffirm ADNOC Gas’ commitment to delivering sustainable growth and maximising shareholder value. We are investing in world-class infrastructure and innovative technologies as we expand our capacity in LNG liquefaction and strengthen our position as a global player."

The Ruwais LNG project is being developed by ADNOC Gas on behalf of its largest shareholder, ADNOC. The capital expenditure for these projects is not included in the costs previously outlined for acquiring ADNOC’s majority stake in Ruwais LNG once operational in 2028.

This investment forms part of a $15 billion capital expenditure plan through 2029, as detailed in ADNOC Gas’ recent strategy update. The contracts will establish essential infrastructure to supply feedstock to the Ruwais LNG export facility.

Future Production Capacity and Environmental Initiatives

Once fully operational, the Ruwais LNG plant will more than double ADNOC Gas’ current production capacity to over 15 million tonnes per annum (mtpa). The facility will include two liquefaction trains, each capable of processing 4.8 mtpa using clean grid electricity—a first in the Middle East and North Africa region.

Upon completion, Ruwais LNG aims to be one of the lowest-carbon intensity plants globally by utilising artificial intelligence and advanced digital technologies to enhance safety, reduce emissions, and improve efficiency.

With inputs from WAM