Petronas Places 15-Year Order for 1 MMtpa of ADNOC LNG

Abu Dhabi National Oil Co. (ADNOC) has signed an agreement to supply one million tonnes per annum (MMtpa) of liquefied natural gas (LNG) to Malaysia’s national oil and gas company for 15 years, ADNOC said Thursday.

Most of the LNG for Petroliam Nasional Bhd. (Petronas) will come from the Emirati state-owned gas giant’s biggest liquefaction project, ADNOC said in a statement.

The government’s Emirates News Agency reported November Ruwais LNG had broken ground. It is expected to start production 2028. The export facility in Al Ruwais Industrial City, on the coast of the Persian Gulf, will have two trains with a combined capacity of 9.6 MMtpa.

With the Petronas contract, over 8 MMtpa of Ruwais LNG’s capacity have been committed through “long-term” agreements, ADNOC said. Delivery for Petronas will start 2028.

“This milestone further underscores ADNOC’s role as a reliable global energy supplier and supports growing demand in Asia for cleaner, more sustainable energy solutions”, said Fatema Al Nuaimi, executive vice president for downstream business management at ADNOC.

Shamsairi Ibrahim, vice president for LNG marketing and trading at Petronas, said, “This partnership with ADNOC marks a significant milestone in strengthening PETRONAS’ business with the UAE, complementing our upstream activities while reinforcing the strategic economic relationship between the UAE and Malaysia”.

“This collaboration bolsters our LNG portfolio with a reliable supply of lower-carbon energy to meet Malaysia’s domestic demand, enhances security of supply for our customers, and fosters deeper government-to-government collaboration whilst enabling sustainable development and providing solutions for the energy transition that will enrich lives for a sustainable future”, Shamsairi added.

Ruwais LNG will be the first gas export facility in the Middle East and Africa to run on clean power, according to ADNOC. Last year it awarded a contract for all-electric compression systems for the project to Baker Hughes Co. Ruwais LNG’s two trains will use the United States firm’s 75-megawatt BRUSH electric motor technology, Baker Hughes said in a press release October 4, 2023.

ADNOC has entered agreements farming out Ruwais LNG stakes totaling 40 percent to BP PLC, Mitsui & Co. Ltd., Shell PLC and TotalEnergies SE.

The companies separately signed up for a 10 percent interest each, as announced July 10, 2024. ADNOC will keep a 60 percent ownership, which will later be transferred to ADNOC Gas, if the deals are finalized, subject to regulatory approvals.

Concurrently, Shell subsidiary Shell International Trading Middle East Ltd. FZE inked an agreement to buy one MMtpa from the project, according to a separate statement by the British energy giant.

Japan’s Mitsui also penned an offtake of 600,000 MMtpa, ADNOC said.

Last June 12 ADNOC announced the final investment decision and the award of a $5.5 billion engineering, procurement and construction contract for Ruwais LNG. The contract went to a joint venture by Technip Energies NV, JGC Holdings Corp. and NMDC Energy.

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