meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc moves Fujairah LNG terminal project to Ruwais

3 May 2023

Abu Dhabi National Oil Company (Adnoc) has announced it will move forward with a liquefied natural gas (LNG) export terminal project in Ruwais Industrial City in Abu Dhabi’s Al-Dhafrah region.

Adnoc did not specify the project, but sources identified it as the planned LNG terminal project in the UAE emirate of Fujairah.

US-headquartered energy industry contractor McDermott International is performing the front-end engineering and design (feed) contract for the Fujairah LNG terminal project. US-based consultancy firm KBR was selected to provide project management consultancy (PMC) services.

In early March, MEED reported that Adnoc Gas, which is executing the project on behalf of its parent entity Adnoc Group, had started an early engagement process with contractors for the planned Fujairah LNG export terminal.

Adnoc Gas organised a site visit between 14-16 February for contractors shortlisted for the Fujairah LNG project’s engineering, procurement and construction (EPC) phase. It was expected to issue the main EPC tender during the second quarter.

The relocation of the project from the UAE’s geopolitically strategic emirate of Fujairah, which sits outside the Strait of Hormuz on the coast of the Gulf of Oman and the Indian Ocean, to Ruwais on the Gulf coast in Abu Dhabi is a significant development.

“As part of the design phase, Adnoc announced today that its world-class low-carbon LNG growth project will move forward in the Al-Ruwais Industrial City, Al-Dhafrah, Abu Dhabi.

“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,” Adnoc said. 

“Following a comprehensive evaluation of location options during the ongoing design phase, 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 were important considerations in the company’s decision.

“Through its planned LNG growth project, Adnoc intends to more than double its LNG production capacity to meet increased global demand for natural gas. The plant, which is designed with electric-powered processing facilities, will run on renewable and nuclear grid power, making it one of the lowest carbon intensity LNG facilities in the world,” Adnoc added. 

Planned LNG terminal

The LNG export terminal will have the capacity to process and ship approximately 9.6 million tonnes a year (t/y) of LNG, mainly to Pakistan, India and China, and other key markets in Asia such as Japan and South Korea. It will comprise two trains, each with a capacity of 4.8 million t/y.

The overall value of the planned project is estimated to be upwards of $4.5bn, based on capital expenditure (capex) by operators on similar schemes worldwide.

The project will also feature process units, storage tanks, an export jetty for loading cargoes and LNG bunkering, utilities, flare handling systems and associated buildings.

Regarding gas feedstock for the planned Fujairah LNG complex, Adnoc Gas aimed to build a 364-kilometre-long, 52-inch pipeline from one of its main gas processing facilities in Abu Dhabi’s Habshan to transport gas at a starting pressure rate of 78 barg and arrival pressure rate of 40 barg.

Adnoc Gas was understood to have allocated a capex budget of $680m for this feedstock pipeline, a core component of the Fujairah LNG facility, according to sources.

The project also requires designs for electric-powered rotary equipment and compressors instead of gas-fired units.

Previously, the following consortiums of contractors were understood to have formed for the main EPC contract tendering phase of the LNG project:

  • Technip Energies (France) / JGC Corporation (Japan) / National Petroleum Construction Company (UAE)
  • McDermott (US) / Saipem (Italy) / Hyundai Engineering & Construction (South Korea)

Adnoc’s plans to build a major LNG export terminal in Fujairah were understood to be the outcome of a pre-feasibility study that US-based KBR performed in 2020 – known as ‘Project Aladdin’ – to determine the most effective use of a plot of land that Adnoc owns in the UAE emirate that sits outside the Strait of Hormuz.

Major LNG producer

Adnoc Gas produces about 6 million t/y of LNG from its facilities on Das Island, located off the Abu Dhabi coast.

The company also supplies 1 billion cubic feet of gas a day to the UAE’s national grid. It is a gas and LNG provider to other utilities companies, portfolio players and commodity traders overseas.

Adnoc Gas’ supplies are exported from Das Island and Ruwais by Adnoc Logistics & Services, another Adnoc Group subsidiary.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10808507/main.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Oil tankers attacked in Iraqi waters

    12 March 2026

    Register for MEED’s 14-day trial access 

    Two tankers carrying Iraqi oil products were set on fire after being attacked in Iraq’s territorial waters near the country’s southern export terminals, increasing concerns about global energy supplies.

    After the attack, the country’s Oil Ministry said that it saw the attacks as “a worrying indicator of escalating tensions in a vital area of the global economy and energy supply”.

    It added that “the safety and safety of navigation in international sea corridors and energy supply routes should be kept away from regional conflicts”.

    The Oil Ministry said the attacks had a direct impact on the stability of the global economy and energy markets, as well as putting the lives of civilians and workers in the maritime transport sector at risk.

    Farhan Al-Fartousi, from Iraq’s General Company for Ports, told state television that one crew member had been killed in the attack and that 38 crew members had been rescued.

    Iraq’s state-owned oil marketing company Somo said that the Maltese-flagged oil tanker Zefyros was attacked as it was preparing to enter the port of Khor Al-Zoubair, where it would have taken on board an additional 30,000 tonnes of liquid naphtha.

    The second targeted vessel, Safesea Vishnu, was sailing under the Marshall Islands flag and was chartered by an Iraqi company, according to Somo.

    Iraq’s oil production has fallen steeply since the conflict began, from 3.3 million barrels a day (b/d) to less than 1 million b/d.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15951323/main.png
    Wil Crisp
  • Chevron yet to agree terms for Iraq oil field takeover

    12 March 2026

     

    US-based oil company Chevron is yet to agree terms with Iraqi state-owned Basra Oil Company (BOC) for its potential takeover of Iraq’s West Qurna-2 oil field, according to industry sources.

    Last month, Chevron signed a preliminary agreement with BOC to explore taking control of the West Qurna-2 oil field.

    Until recently, West Qurna-2 was operated by Russia’s Lukoil, which faces a 28 February deadline to divest its assets in Iraq under sanctions.

    One industry source said: “Chevron is yet to agree terms, and it has made it clear that it wants different terms to the contract that Lukoil had.”

    In January, Iraq’s cabinet approved temporarily nationalising petroleum operations at the West Qurna-2 oil field until a new operator was found.

    Lukoil declared force majeure at the West Qurna-2 oil field in November, after sanctions by the UK, EU and US were announced in October.

    The Russian company had a 75% stake in the asset.      

    Prior to Russia’s Lukoil declaring force majeure, Iraq’s state oil authorities froze all cash and crude payments to Lukoil in compliance with the sanctions.

    In a statement released on 1 December 2025, Iraq’s Oil Ministry said that it had extended “direct and exclusive invitations to a number of major American oil companies”.

    Awarded to Lukoil in 2009, West Qurna-2 lies about 65 kilometres northwest of Basra in southern Iraq and produces about 480,000 barrels a day (b/d) of oil, accounting for roughly 10% of the country’s total oil output.

    At the same meeting on 23 February, Chevron also signed a deal relating to the development of the Nasiriyah field, four exploration sites in the province of Dhi Qar and a field in the province of Salahaddin.

    Chevron signed an agreement in principle with Iraq in August 2025 to develop the Nasiriyah oil project in the province of Dhi Qar.

    At the time, Iraq said it expected the Nasiriyah project to reach a production capacity of 600,000 b/d within seven years.

    READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15944830/main.png
    Wil Crisp
  • Egyptian/Saudi firms to invest $1.4bn in Cairo project

    12 March 2026

    Saudi Arabia’s Sumou Investment, through its subsidiary Adeer International, and Egyptian developer Paragon Developments have signed an agreement to jointly develop a mixed-use project in Mostakbal City, East Cairo.

    According to local media reports, the project will cover about 500,000 square metres and will be developed with a total investment of about $1.4bn.

    The project will be developed by Paragon-Adeer, a joint venture of Paragon Developments and Adeer International.

    The announcement follows a $1.4bn deal signed in July last year between Adeer International and another Egyptian developer, Midar, to jointly develop a mixed-use project in Mostakbal City.

    Midar, Sumou Investment and Hassan Allam Properties are partnering to develop $2bn in hospitality and leisure projects across several locations in Cairo within Midar-owned land parcels. 

    According to GlobalData, Egypt’s residential construction sector is expected to grow by 8.3% from 2026 to 2029, supported by investments in the housing sector and the government’s focus on addressing the country’s growing housing deficit amid a rising population.

    The commercial construction sector is expected to register real-term growth of 6.6% during 2026-29, supported by a rebound in tourism and hospitality markets and an improvement in investment in office buildings and wholesale and retail trade activities.

    MEED’s March 2026 report on Egypt includes:

    > COMMENT: Egypt’s crisis mode gives way to cautious revival
    > GOVERNMENT: Egypt adapts its foreign policy approach
    > ECONOMY & BANKING: Egypt nears return to economic stability
    > OIL & GAS: Egypt’s oil and gas sector shows bright spots
    > POWER & WATER: Egypt utility contracts hit $5bn decade peak
    > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15939746/main.jpg
    Yasir Iqbal
  • Qiddiya gives high-speed rail prequalifying firms more time

    12 March 2026

     

    Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company (QIC) and the National Centre for Privatisation & PPP, has set a new deadline of 16 April for firms to submit prequalification statements for the development of the Qiddiya high-speed rail project in Riyadh

    The prequalification notice was issued on 19 January, with an initial submission deadline of 17 March.

    The clients are considering delivering the project using either a public-private partnership (PPP) model or an engineering, procurement, construction and financing (EPCF) basis.

    Firms have been asked to prequalify for one of the two models.

    Last month, the clients invited interested firms to a project briefing session on 23 February at Qiddiya Entertainment City.

    The Qiddiya high-speed rail project will connect King Salman International airport and the King Abdullah Financial District (KAFD) in Riyadh with Qiddiya City.

    Also known as Q-Express, the railway line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of Riyadh. 

    In November last year, MEED reported that more than 145 local and international companies had expressed interest in developing the project.

    These included 68 contracting companies, 23 design and project management consultants, 16 investment firms, 12 rail operators, 10 rolling stock providers and 16 other services firms.

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project.

    UK-based consultancy Ernst & Young is acting as the transaction adviser on the project. Ashurst is the legal adviser.

    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 

    READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15939059/main.gif
    Yasir Iqbal
  • Wynn resumes construction on Ras Al-Khaimah project

    12 March 2026

    Register for MEED’s 14-day trial access 

    US-based Wynn Resorts said on 11 March that site activity on its resort project on Ras Al-Khaimah’s Al-Marjan Island has restarted after work was temporarily halted. New measures are in place to ensure the safety and security of the workforce. 

    “Wynn employees have been offered the opportunity to work from abroad, if their home embassy recommends they do so,” the company added.

    The $5.1bn project involves the construction of an integrated resort with 1,500 rooms, high-end shopping, MICE venues and the UAE’s first confirmed gaming area. It is scheduled to open in spring 2027.

    The 70-floor 283-metre-tall main structure was topped out in December 2025.

    Financially, Wynn Resorts holds a 40% equity stake in the joint-venture development company alongside local partners Marjan and RAK Hospitality Holding. Wynn reported in late 2025 that about two-thirds of the project’s budget had already been spent or contractually committed, which provides a degree of protection against fluctuating material costs.

    In 2025, Wynn Resorts said it had secured a $2.4bn construction facility to finance the development of the project. In a statement at the time, Wynn said the financing is the largest hospitality financing transaction in UAE history. The loan, available to Wynn Al-Marjan Island FZ-LLC – a subsidiary of the 40%-owned joint venture – is denominated in both AED and US dollars.

    Structured as a delayed draw facility, the seven-year term loan offers competitive market interest rates and substantial financial flexibility for the joint-venture partners.

    The syndicate includes prominent regional and international banks, with Abu Dhabi Commercial Bank and Deutsche Bank serving as joint coordinators. The joint coordinators, along with First Abu Dhabi Bank, Emirates NBD Capital and the National Bank of Ras Al-Khaimah, acted as mandated lead arrangers, bookrunners and underwriters, and Sumitomo Mitsui Banking Corporation acted as lead arranger. First Abu Dhabi Bank is also the agent and security agent for the lenders.

    Dubai-based Alec was appointed as the project’s main contractor in 2023. Earlier in March, Alec said it had resumed on-site and in-office operations across its UAE projects from 4 March.

    In a statement, the company said that it is working closely with clients to ensure a prompt and safe return to full-scale activity.

    The move follows a temporary work-from-home policy introduced across the company’s UAE operations in response to ongoing events, as Alec Holdings reaffirmed its commitment to protecting its workforce while continuing to deliver in clients’ best interests.

    During the same period, the company said its operations in Saudi Arabia remained fully operational.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15952339/main.jpg
    Colin Foreman