Oil Giant to Acquire 10% Stake in Ruwais LNG Facility
ADNOC, along with a consortium of partners including bp, Mitsui & Co., Shell, and TotalEnergies, is undertaking a significant project in Al Ruwais Industrial City, Abu Dhabi, United Arab Emirates. This project, known as Ruwais LNG, aims to establish a liquefied natural gas facility with a total capacity of 9.6 million tons per annum (mtpa) spread across two 4.8 mtpa liquefaction trains. The final investment decision for this project was made in June 2024, marking a major milestone in the development of this crucial infrastructure.
Dr. Sultan Ahmed Al Jaber, Managing Director and Group CEO of ADNOC, highlighted the importance of Abu Dhabi’s extensive gas reserves, which rank as the 7th largest in the world. These reserves play a crucial role in enabling UAE’s gas self-sufficiency, supporting industrial growth, diversification, and meeting the increasing global demand for gas as both a fuel and feedstock. The partnership between ADNOC and its consortium of international partners reflects a strategic alignment to harness these resources effectively.
For bp, this partnership with ADNOC represents a significant step in expanding its presence in the Middle East and strengthening its global LNG business. Murray Auchincloss, CEO of bp, expressed pride in joining hands with ADNOC in the venture, underscoring the company’s commitment to value creation and returns. This collaboration underscores bp’s strategic focus on growth in the gas sector, aligning with its broader energy transition goals.
In addition to its involvement in the Ruwais LNG project, bp has been actively pursuing other strategic acquisitions and initiatives to bolster its presence in the renewable energy space. One notable acquisition is the absorption of Bunge’s 50% holding interest in the bp Bunge Bioenergia S.A. joint venture, making bp the sole owner of this industrial sugarcane and ethanol business. This move is valued at approximately .4 billion and will enable bp to enhance its production capacity for ethanol and explore opportunities in bioenergy, including sustainable aviation fuel and biogas.
Furthermore, bp’s acquisition of GETEC ENERGIE GmbH in Germany is a strategic move to expand its presence in the European power and gas supply market. By integrating energy solutions for commercial and industrial customers, bp aims to offer a comprehensive suite of services to cater to the evolving energy needs of its clients in Germany and across Europe. This acquisition is part of bp’s broader strategy to simplify its portfolio and focus on delivering integrated energy solutions in key markets.
Overall, bp’s partnerships and acquisitions underscore its commitment to sustainability, innovation, and growth in the energy sector. The Ruwais LNG project, in particular, represents a significant milestone in ADNOC’s efforts to leverage its abundant gas reserves for economic development and energy security. As the global energy landscape continues to evolve, collaborations like these will play a crucial role in shaping the future of the industry and advancing sustainable energy solutions.
