Several energy majors including Shell and TotalEnergies have entered discussions to purchase stakes in Adnoc’s new LNG project in the UAE.

The companies are seeking equity in Adnoc’s Ruwais LNG facility, which is currently under development. Operations are expected to start in 2028, and the companies currently in talks are reportedly also seeking contracts to buy LNG from the facility when it begins operating.

Japanese trading house Mitsui & Co. is also reportedly involved in talks surrounding the Ruwais facility, although representatives for the company told Bloomberg that no decision had been made at this time.

An anonymous source told Bloomberg that an investment decision could happen as soon as next month, but also noted that Adnoc is fully able to finance the project itself and therefore may decide not to sell equity in the project.

Adnoc has already signed delivery agreements for production from the Ruwais facility. In December 2023, the company announced that it had signed a 15-year heads of agreement with Singaporean company ENN LNG for the delivery of at least one million tonnes per annum (mtpa) of LNG. More recently, Adnoc signed a second 15-year agreement, announcing in March 2024 that it had agreed to deliver SEFE Marketing & Trading Singapore 1mtpa of LNG, mostly from the Ruwais facility.

Adnoc Gas, Adnoc’s natural gas and LNG unit, also recently announced plans to invest $13bn (Dh414.99bn) in domestic and international growth opportunities over the next five years, to boost earnings before interest, taxes, depreciation and amortisation (EBITDA) by 40% by 2029. Part of this plan involves massively expanding LNG export volumes and more than doubling LNG production capacity by 2028.