ADNOC awards $400m critical equipment contract for low carbon LNG project

ADNOC announced on Wednesday it has awarded a contract, valued at more than US $400 million (AED 1.47 billion), to Baker Hughes, through its Nuovo Pignone International S.R.L. legal entity, for the supply of all-electric compression systems for the liquefaction of natural gas, to be powered by clean energy, for its low-carbon LNG asset in the Al Ruwais Industrial City in Al Dhafrah, Abu Dhabi. The LNG trains will comprise energy efficient Baker Hughes technology, including compressors, driven by 75 MW electric motors.

The Ruwais LNG plant will be the first LNG project in the Middle East and North Africa region to run on clean power, making it one of the lowest carbon intensity LNG facilities in the world.

Fatema Al Nuaimi, Executive Vice President, Downstream Business Management at ADNOC, said: “As the first clean electricity powered LNG facility in the Middle East, the Ruwais LNG project reinforces ADNOC’s leadership within the LNG industry and underscores our commitment to decarbonization, sustainability and innovation. The project aligns with ADNOC’s objectives to grow our energy portfolio with lower-carbon solutions, reinforcing our position as a reliable global supplier of natural gas and contributing to enhancing global energy security.”

The Ruwais LNG project consists of two 4.8 million metric tons per annum (mtpa) natural gas liquefaction trains with a total capacity of 9.6 mtpa of LNG. When completed, it will more than double ADNOC’s LNG production target capacity to meet increased global demand for natural gas.

The award of the contract underscores ADNOC’s commitment to accelerate its net zero ambition and decarbonization plans. It is an important milestone as the company builds on its legacy as a responsible global energy pioneer and doubles down on its decarbonization efforts, backed by an initial allocation of $15 billion (AED55 billion) to low-carbon solutions.