BP p.l.c. (BP) confirmed today its intention to acquire a 10% interest in the Ruwais liquefied natural gas (LNG) project in Al Ruwais Industrial City, Abu Dhabi. This move, subject to necessary regulatory approvals, signifies BP’s ongoing investment in gas growth in the Middle East and its strategy to expand its global LNG portfolio.
Strategic Partnerships and Investment
The Ruwais LNG project, led by ADNOC with a 60% interest, also includes Mitsui & Co, Shell, and TotalEnergies, each holding 10% stakes. ADNOC had previously announced its final investment decision for the project’s development in June.
BP CEO Murray Auchincloss expressed pride in joining ADNOC’s initiative, emphasizing the deepening of their long-standing strategic partnership. Auchincloss stated, “This is a further example of our investment in gas growth in the Middle East as we continue to strengthen our LNG business globally. Our investment is fully accommodated within our disciplined financial frame and reflects our drive to focus on value and returns.”
Project Details and Capacity
The Ruwais LNG project is designed to consist of two liquefaction trains, each with a capacity of 4.8 million tonnes per annum (mmtpa), totaling 9.6 mmtpa. This development aligns with BP’s strategic goal to enhance its competitive gas positions and meets its expected return thresholds for oil and gas investments. The project’s capital expenditures are included in BP’s disciplined financial framework, with capex targets of approximately $16 billion for both 2024 and 2025.
ADNOC’s Vision and Global Demand
His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, highlighted the significance of Abu Dhabi’s abundant gas reserves, the seventh largest globally, in achieving UAE gas self-sufficiency, industrial growth, and diversification. He stated, “We are delighted to welcome BP, Mitsui & Co, Shell, and TotalEnergies as partners in the Ruwais LNG project.”
Long-Standing Relationship
BP and ADNOC share a relationship spanning over 50 years, with BP holding 10% interests in ADNOC LNG and the National Gas Shipping Company (NGSCO). This announcement further strengthens their strategic partnership across energy, renewables, and carbon capture and storage technology.
Earlier this year, BP and ADNOC agreed to form a new joint venture in Egypt, aiming to grow a highly competitive gas portfolio. Additionally, ADNOC holds a 25% stake in the design stage of BP’s blue hydrogen project, H2Teesside. BP’s net share of production from Abu Dhabi is currently around 200,000 barrels of oil per day from ADNOC Onshore.
