Rendering of the Ruwais LNG concept design; Source: ADNOC

Shell lines up 15-year offtake from ADNOC’s mega LNG project

Project & Tenders

UAE-headquartered Abu Dhabi National Oil Company (ADNOC) has struck a multi-year liquefied natural gas (LNG) offtake deal with Shell International Trading Middle East Limited FZE, a wholly-owned subsidiary of the UK-based Shell, for its low-carbon LNG project, currently under development in the United Arab Emirates (UAE).

Rendering of the Ruwais LNG concept design; Source: ADNOC

Thanks to a 15-year sales and purchase agreement (SPA) for the delivery of up to 1 million tons per annum (mtpa) of LNG, ADNOC has signed its first long-term LNG sales agreement with Shell, which marks the eighth long-term offtake deal for the Ruwais LNG project, after the first SPA was announced in 2024. Shell holds a 10% stake in the project through its subsidiary, Shell Overseas Holdings.

The latest SPA, which converts a previous heads of agreement into a definitive agreement, is said to represent a significant step in ADNOC’s efforts to rapidly commercialize the project, as the LNG will be primarily sourced from the Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi.

Fatema Al Nuaimi, CEO of ADNOC Gas, commented: “This agreement with Shell marks a significant milestone that reinforces ADNOC’s position as a reliable global supplier of lower-carbon LNG. Securing over 80% of Ruwais LNG’s capacity in just over a year from FID is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally.

“While the industry can take up to four or five years to market such volumes, Ruwais is advancing at record pace. In parallel, construction, contractor mobilization, and site works are all on track for commissioning by the end of 2028.”

With this agreement, more than 8 mtpa of the project’s planned 9.6 mtpa capacity is now secured through long-term deals with customers across Asia and Europe, just 16 months after the project’s final investment decision (FID) in July 2024.

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Tom Summers, Executive Vice President of Shell LNG Marketing and Trading, underlined: “Shell’s trusted partnership with ADNOC dates back more than 50 years and today we share a vision of strengthening global energy security through strategic collaboration. This agreement is a significant milestone in our partnership with ADNOC and supports Shell’s strategy of expanding our LNG portfolio.’’

The UAE giant claims that the Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa region to operate on clean power, making it one of the lowest-carbon intensity LNG projects in the world, leveraging artificial intelligence (AI) and the latest technologies to enhance safety, operational efficiency, and emissions performance.

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With two 4.8 mtpa liquefaction trains, the facility is expected to more than double ADNOC Gas’ existing LNG production capacity to approximately 15 mtpa, supporting ADNOC’s strategy to expand its LNG portfolio to meet rising global demand.

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