UAE Plans MENA's First LNG Facility

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--An investment of more than US$5 billion will support the development of the first liquefied natural gas (LNG) export facility for the Middle East and North Africa (MENA), a facility that will be powered largely by clean energy.

Technip Energies (Paris, France) leads a joint venture selected by the Abu Dhabi National Oil Company (ADNOC) (Abu Dhabi, United Arab Emirates) to lead the engineering, procurement and construction of LNG export facility in the Ruwais industrial area in Abu Dhabi.

The facility would have a design capacity of 9.6 million metric tons per year (mtpa), effectively doubling ADNOC's capacity to produce LNG.

"The facility will leverage artificial intelligence (AI) and the latest technologies to enhance safety, minimize emissions and drive efficiency," ADNOC explained.

Critics argue that LNG is still a polluting fossil fuel, with a carbon footprint along the entire supply chain much greater than cleaner sources of energy such as wind or solar power. Leaks of methane, a greenhouse gas with far more warming potential than carbon dioxide (CO2), are a mounting concern as well.

To address the environmental concerns, and with an aim of decarbonizing the economy of the United Arab Emirates (UAE), ADNOC said it would power the LNG facility at Ruwais with nuclear energy.

"By powering electrified LNG trains with nuclear energy, this project sets a new standard for energy security and sustainability," said Arnaud Pieton, the chief executive officer at Technip Energies.

The facility itself will consist of two liquefaction facilities, or trains, that will have a peak design capacity of 4.8 mtpa each. ADNOC already produces around 15 mtpa in LNG from existing UAE infrastructure.

The Emirati government expects to see 55% of the $5.5 billion set aside for the export facility at Ruwais to flow back into the nation's economy. The nation's economy expanded by 3.6% last year, its central bank said Thursday. Growth was somewhat muted, however, by a low-price commodity cycle.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project report.

The final investment decision (FID) on the LNG terminal at Ruwais follows an investment in U.S. infrastructure. For undisclosed terms, ADNOC last month took an 11.7% equity stake in the first liquefaction facility planned for the Rio Grande export terminal in Texas.

ADNOC in its first investment deal in the U.S. market also secured a 20-year offtake agreement for the volumes expected from the eventual fourth train, for which operator NextDecade Corporation (NASDAQ:NEXT) (Houston, Texas) has plans for a final investment decision before the year is out.

Assuming all export facilities are operating at full capacity, the United States is the world leader in LNG exports. Despite a pause in new terminal construction from U.S. President Joe Biden on environmental grounds, LNG exports from the U.S. market are expected to increase by next year, cementing the Gulf Coast as a key hub for future deliveries. Subscribers can learn more by viewing the related project reports.

NextDecade is building its Rio Grande facility near the Brownsville shipping channel in the far south of Texas. It's permitted for as much as 1.3 billion cubic feet (Bcf) of LNG exports per year, and the first two trains are nearly 20% completed, though much of that is in engineering work rather than actual construction.

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