ADNOC plans natural gas plant in Fujairah as UAE looks to double LNG export to meet surge in demand
ADNOC has appointed McDermott International Ltd as the design contractor and intends to award a contract for the construction of the plant in 2023
UAE’s state-owned Abu Dhabi National Oil Co (ADNOC) plans to build a new liquefied natural gas plant in Fujairah as the world’s producers race to expand their exports amid surging demand.
Once complete, the LNG facility will be able to produce as much as 9.6 million tonnes a year.
The UAE currently has three liquefaction trains with a combined capacity of 5.8 million tonnes per annum (mtpa) at Das Island.
ADNOC has appointed McDermott International Ltd as the design contractor and intends to award a contract for the construction of the plant in 2023, the oil company said in a statement on its Linkedin page.
The plant will use new technologies and “clean power” to reduce the carbon intensity of the LNG it produces, Bloomberg reported.
Appetite for LNG among energy consumers has grown since Russia’s war in Ukraine, particularly in Europe, reinforcing a global market for the fuel that was already strengthened by rising demand in Asia last winter.
While prices have eased slightly over the past month “higher prices and more volatility” are expected because of Europe’s switch to LNG, Biraj Borkhataria, associate director of European research at RBC Europe Limited, told Bloomberg.
The UAE was the world’s 12th-largest LNG producer in 2021, making it a relatively small global player. However, a $20 billion push to develop more of its natural gas resources means it will be able to produce much more from about 2025 and the country aims to become self-sufficient by 2030.