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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

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