Shell and Total Energies reportedly mull stake in Middle East LNG super-project
UK oil and gas supermajor Shell is reportedly considering buying a stake in the Abu Dhabi National Oil Company’s (ADNOC) liquefied natural gas (LNG) export project in the United Arab Emirates (UAE).
According to Bloomberg, Shell, along with French oil major Total Energies and Japanese iron and steel trading firm Mitsui & Co are seeking equity in the Ruwais facility, a new LNG site currently under development in Al Ruwais Industrial City, Abu Dhabi.
When completed, the project, which consists of two 4.8 metric tonnes per year (mmtpa) LNG liquefaction trains with a total capacity of 9.6mmtpa, will more than double ADNOC’s LNG production capacity, from 6mmtpa to around 15mmtpa.
The site is currently 100 per cent owned by Abu Dhabi through ADNOC, though the company has been open about considering bids for investment since the project began.
A final investment decision is expected for the project in the coming months and Shell would be considered a prime candidate to buy up a stake.
Already an LNG leader among the oil’s so-called ‘big four’, the company forecasts demand for the cooled energy source to rise by 50 per cent by 2040 and global LNG trade will grow to around 625-685m tonnes per year, up from the 404m tonnes traded in 2023.
London’s largest-listed firm has been in the spotlight in recent weeks over its future in the UK, throwing the markets into panic at the idea of a potential move to New York.
The fears were based on comments made by Shell chief Wael Sawan to Bloomberg columnist Javier Blas some months ago, saying that the company’s £188bn market capitalisation was “undervalued”.
London’s fears were further fuelled by former chief Ben van Beurden agreeing with Sawan, adding that the US was increasingly becoming a haven for energy companies away from the pressure to go green felt in Europe.
Shell has been contacted for comment.