Adnoc Gas sees potential to advance Ruwais LNG commercial start

ADNOC Gas continues to strengthen its position as a key player in the liquefied natural gas sector, driven by accelerated progress in the execution of its strategic programmes and projects under an integrated approach focused on enhancing the operational readiness of its assets and ensuring their long-term sustainability, amid rapid global energy market shifts in supply and demand.

The advanced pace of delivery at the Ruwais LNG project underscores its strategic importance. With a production capacity of 9.6 million tonnes per annum, ADNOC Gas indicated that construction works are progressing ahead of approved schedules, opening the possibility of bringing forward the start of commercial operations currently planned for the second half of 2028.

Once operational, the project is expected to raise the UAE’s total LNG production capacity to around 15 million tonnes per annum.

In a statement to Emirates News Agency (WAM), ADNOC Gas said it will acquire ADNOC’s stake in the Ruwais project upon completion at an estimated cost of about US$5 billion. The company added that it has already secured long-term sales and purchase agreements covering more than 8 million tonnes per annum of the project’s output, allocating 80 percent of production to long-term contracts while marketing the remaining volumes on the spot market, in line with the business model applied at the Das Island facility.

ADNOC Gas noted that this approach supports the generation of stable value during the early phases of operation, while acknowledging that global market outlooks remain subject to change based on prevailing conditions.

Regarding the Das Island LNG facility, which has been operating for nearly five decades with a capacity of around 6 million tonnes per annum, the company explained that it completed a comprehensive upgrade programme last year, including the expansion of loading jetties to accommodate larger vessels. The next phase will involve a major refurbishment of trains one and two to maintain operational reliability.

ADNOC Gas reaffirmed its commitment to continued investment in the facility to enhance readiness, while noting that capacity expansion plans are not currently under consideration in light of evolving global energy markets.

The company added that it is closely monitoring developments in global demand, including anticipated growth linked to the expansion of artificial intelligence data centres, which will help shape future priorities between meeting domestic demand and expanding exports.

ADNOC Gas also said it has taken proactive steps to address expectations of increased global LNG supply during the second half of this year by securing a number of long-term contracts, particularly with customers in Asian markets, ensuring effective marketing of Ruwais LNG volumes and stable returns despite market volatility.

Over the past three years, the company has signed a series of long-term agreements to supply annual LNG volumes ranging between 0.4 and 1.2 million tonnes under contracts lasting up to 14 years. These agreements expand its customer base and reinforce ADNOC Gas’s position as a leading and reliable global supplier of lower-emissions LNG to fast-growing Asian energy markets.

ADNOC Gas confirmed that it is preparing to take the final investment decision on the second phase of the Rich Gas Development project. The first phase is progressing according to schedule since its approval in June 2025 and aims to add 1.5 billion cubic feet per day of processing capacity by 2027. This phase includes a comprehensive programme to debottleneck operations at four key facilities: Asab, Buhasa, Habshan and Das Island.

The second phase involves the construction of a new fractionation unit, Train 5, at the Ruwais facility to produce liquefied petroleum gas, condensate and naphtha, while the third phase includes adding a new gas processing train at the Habshan facility.

ADNOC Gas reiterated that its growth strategy follows a clear, phased approach focused on maximising existing production capacity, resolving operational bottlenecks to enhance efficiency, and expanding through new units when required to ensure optimal utilisation of company assets.

 WAM