Japanese trading and investment giant Mitsui & Co. refuted a recent media report claiming a finalized partnership with Abu Dhabi National Oil Company (ADNOC) on a liquefied natural gas (LNG) project. The Nikkei newspaper reported on Tuesday that Mitsui would hold a 10% stake in the $7 billion project located at Ruwais, with ADNOC controlling the remaining 90%.
Mitsui's spokesperson responded by stating that no final decisions had been made regarding the project. ADNOC and Shell also declined to comment, while BP and TotalEnergies have yet to respond to inquiries.
The Nikkei report comes amidst heightened global demand for LNG, particularly in Europe, which is scrambling to replace Russian gas supplies disrupted by the ongoing war in Ukraine. The Ruwais LNG project, envisioned to have two 4.8 million metric tons per annum (mtpa) LNG liquefaction trains upon completion, aligns with ADNOC's ambitious plans to double its LNG production capacity.
ADNOC views natural gas and LNG, along with renewable energy and petrochemicals, as cornerstones of its future growth strategy. The company has actively pursued acquisitions of foreign firms to bolster its gas portfolio.
In March, ADNOC issued a limited notice to proceed for early engineering, procurement, and construction (EPC) activities on the Ruwais project to a consortium led by Technip Energies and including JGC Corporation and National Petroleum Construction Company. A final investment decision is anticipated this year, with commercial operations expected to commence in 2028.
ADNOC has already secured several LNG supply agreements, including two deals for LNG sourced from the Ruwais project. The project also boasts eco-friendly credentials, featuring electric-powered processing facilities that will be powered by renewable and nuclear grid electricity, making it one of the world's lowest carbon intensity LNG facilities.