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TOP NEWS: Shell and BP to invest in Ruwais LNG project in Abu Dhabi

10th Jul 2024 12:25

(Alliance News) - Shell PLC on Wednesday said it will invest in a liquefied natural gas project in Abu Dhabi alongside BP PLC, TotalEnergies SE and Mitsui & Co Ltd.

The London-based oil major said it and the other three large companies will each hold a 10% stake in the Abu Dhabi National Oil Co's Ruwais LNG project, with ADNOC holding a majority 60% stake.

A Technip-led joint venture will "soon" start the construction in AI Ruwais Industrial City in Abu Dhabi, with LNG deliveries expected to start in 2028.

Shell Chief Executive Officer Wael Sawan said: "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 project will consist of two 4.8 million metric tonnes per year LNG liquefaction trains with a total capacity of 9.6 million metric tonnes per year.

Further, Shell signed an agreement to offtake one million metric tonnes per year of LNG produced by the project, via the company's subsidiary Shell International Trading Middle East Ltd FZE.

"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," Shell said.

Shell shares were 0.1% higher at 2,837.50 pence each on Wednesday afternoon in London, BP shares rose 0.6% to 456.73p each and TotalEnergies shares were 0.1% lower at EUR63.16 each in Paris. Mitsui shares had closed 0.9% lower at JPY3,732.00 each in Tokyo, before the announcement.

By Tom Budszus, Alliance News slot editor

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