ADNOC Gas is looking at a LNG export facility in Fujairah that would avoid the Strait of Hormuz. The study was confirmed by Chief Executive Fatema Mohamed Al Nuaimi on Tuesday, but no final decision was made. The company posted $1.34 billion in net income for the third quarter and has $4 billion in full-year guidance. Its parent’s $5.5 billion-plus Ruwais LNG project just installed its first two refrigeration compressor trains.
“So we’ve been looking at the various ways and means of really getting to our customers, and evaluating in the past few months,” Al Nuaimi said in an earnings call. It’s a natural process to look at ways to improve our service to our customers,” he said.
Other Projects
Another LNG project is advancing in Kuwait where MBPS has signed a $127.3 million Kuwait drilling contract with state-owned Kuwait Oil Company. The Omani contractor will provide and operate three new 1,000-horsepower land rigs for drilling and workover activities. MBPS is owned by a majority stakeholder, Adnoc Drilling, a UAE-based oil field services company.
Scope of the Fujairah LNG export facility study
Her comments responded to a query about finding export capabilities in Fujairah, on the UAE’s coast of the Gulf of Oman. The east-coast port is located on the other side of the strait and has emerged as a major crude outlet since the disruption started. A coastal LNG hub would thus be able to reach open water without the need for transiting through the Gulf.
Chief Financial Officer Peter van Driel refused to estimate the size of the concept. It’s an ongoing process, and anything you ask is part of that process,” van Driel said. Once a decision is made, we will come back, “Size, amount of gas going in, market volumes that we want to sell to our customers.
The urgency of the idea is provided by the war. The conflict has left Qatar’s Ras Laffan exports idle, and ADNOC’s 6 MTPA Das Island plant continued to run. ADNOC already transports 1.8 million bpd of crude overland via the Habshan-Fujairah pipeline. Enterprise AM is expecting growth in early 2027.
History cuts the other way. In 2023, Ruwais LNG was moved from Fujairah to its current location in Ruwais. The move brought the project to Ruwais Industrial City, inside the Gulf and next to ADNOC’s main operations.
Outlook for the 9.6 MTPA Ruwais LNG buildout
Ruwais LNG has a total capacity of 9.6 million metric tons per annum (mtpa) in two 4.8 MTPA electric-driven trains. The EPC scope is held by Technip Energies, JGC Corporation and NMDC Energy. Each of the four companies, Shell, TotalEnergies, BP and Mitsui, holds 10 percent. ADNOC Gas will buy 60 percent of ADNOC at cost. Al Nuaimi said the first two refrigeration compressor trains have been installed. Van Driel aimed for first cargoes by late 2028 or early 2029.
In the meantime, the earnings picture backs up the buildout. Third-quarter net income came in flat year-on-year at $1.34 billion. The figure was double the previous quarter due to increased production, prices and export volumes.
The number of vessels passing through the Strait of Hormuz has been rising steadily, van Driel said, but without elaborating on how that occurs. The $4 billion net profit guidance is based on fourth-quarter exports remaining close to the third-quarter level. A Fujairah decision would then add a second export gateway before Ruwais LNG ships its first cargo in late 2028.
Project Overview: Fujairah LNG Export Facility
- Company: ADNOC Gas PLC (ADNOCGAS.AD)
- Study: Fujairah LNG export facility
- Ruwais LNG Value: $5.5 billion-plus
- Status: Assessment underway, no decision
Scope
- East-coast hub beyond Hormuz
- Size and volumes under assessment
- Ruwais LNG: two 4.8 MTPA trains
- Electric-driven, low-carbon design
Project Highlights
- Fujairah sits on Gulf of Oman
- Habshan-Fujairah pipeline: 1.8 million bpd
- Pipeline expansion slated early 2027
- Das Island kept 6 MTPA running
Key Developments
- Study confirmed on Tuesday call
- First two compressor trains installed
- EPC: Technip Energies, JGC, NMDC Energy
- Shell, TotalEnergies, BP, Mitsui hold 10 percent
Key Challenges
- Iran war still disrupts Hormuz transit
- Ras Laffan exports remain idled
- No final Fujairah decision yet
- Guidance hinges on steady Q4 exports
Outlook
- First Ruwais LNG cargo late 2028
- ADNOC Gas acquires 60 percent at cost
- Fujairah decision follows assessment
- Second gateway would bypass the strait
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