ADNOC’s low-carbon LNG growth project to move forward in Al Ruwais
ADNOC's low-carbon LNG growth project to move forward in Al Ruwais - Offshore Energy
ADNOC’s low-carbon LNG growth project to move forward in Al Ruwais
UAE’s Abu Dhabi National Oil Company (ADNOC) has decided that its low-carbon LNG growth project will move forward in the Al Ruwais Industrial City, Al Dhafrah, Abu Dhabi.
ADNOC announced the decision on 2 May as part of the design phase for the project that was initially planned to be located in Fujairah.
“As an operational hub for ADNOC and its operating companies, the selected location offers significant synergies and existing infrastructure that will be leveraged to deliver project efficiencies, unlocking additional value for ADNOC, its partners and the UAE”, the company stated
During the ongoing design phase, which commenced last year, the company conducted a comprehensive evaluation of location options, taking into consideration the proximity of Al Ruwais to ADNOC’s current operations, as well as its future growth projects, in addition to a well-established local supplier base.
Through its planned LNG growth project, ADNOC intends to more than double its LNG production capacity to meet the increased global demand for natural gas.
The plant, which is designed with electric-powered processing facilities, will run on renewable and nuclear grid power which is expected to make it one of the lowest carbon-intensity LNG facilities in the world.
Amid increased demand, ADNOC also recently signed a three-year supply agreement with TotalEnergies Gas and Power Limited, a subsidiary of French energy giant TotalEnergies, for the export of LNG.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.