bp to Absorb 10% Interest in ADNOC’s Ruwais LNG Facility

bp intends to acquire a 10% interest in ADNOC’s planned Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, United Arab Emirates. Ruwais LNG is led by ADNOC with its 60% holding interest, alongside 10% holding interests from bp, Mitsui & Co., Shell, and TotalEnergies. In June 2024, ADNOC took the final investment decision in the project’s development.

“Abu Dhabi’s abundant gas reserves, the 7th largest in the world, are enabling UAE gas self-sufficiency, industrial growth and diversification, as well as helping meet growing global demand for gas as both a fuel and a feedstock,” said Dr. Sultan Ahmed Al Jaber, Managing Director and Group CEO, ADNOC. “We are delighted to welcome bp, Mitsui & Co, Shell, and TotalEnergies as partners in the Ruwais LNG project.”

The interest acquisition enhances bp’s and ADNOC’s partnership focused on energy, renewables, and carbon capture and storage technology, in addition to the duo’s collaboration at ADNOC’s onshore concession in Abu Dhabi. Once completed, the Ruwais LNG project will contain two 4.8 mtpa liquefaction trains for a total capacity of 9.6 mtpa.

Rendering of Ruwais LNG facility; Image Credits: ADNOC

“bp is proud to be joining ADNOC in its plans for Ruwais LNG, deepening our long-standing strategic partnership,” said Murray Auchincloss, CEO of bp. “This is a further example of our investment in gas growth in the Middle East as we continue to strengthen our LNG business globally. Our investment is fully accommodated within our disciplined financial frame and reflects our drive to focus on value and returns.”

In June 2024, bp agreed to absorb Bunge’s 50% holding interest in the bp Bunge Bioenergia S.A. joint venture and, upon completion, will become the sole owner of the industrial sugarcane and ethanol business. The acquired stake is valued at approximately $1.4 billion and will consolidate 100% of the joint venture’s financial results, including a net debt of roughly $500 million and lease obligations of about $700 million.

The acquisition provides bp the capacity to produce approximately 50,000 barrels per day of ethanol equivalent from sugarcane using the joint venture’s 11 agro-industrial units in five Brazilian states. bp leverages an integrated business model that covers the total production chain, including the sales of ethanol and sugar. The ownership will also offer the potential to develop additional platforms for bioenergy, such as next generation ethanol, sustainable aviation fuel (SAF), and biogas.

In addition to the bp Bunge Bioenergia acquisition, the company is scaling back development plans for new SAF and renewable diesel biofuels projects at existing locations, aligning with its goal to simplify the portfolio. Planning is paused for two potential projects and three are being assessed for progression. The 50% stake acquisition is expected to close by year-end 2024.

In January 2024, bp announced the planned acquisition of GETEC ENERGIE GmbH, which supplies energy solutions for commercial and industrial customers in Germany. Upon finalizing the purchase, bp’s European power and gas supply presence will be expanded, allowing the company to deliver integrated energy solutions to new and existing customers in Germany and elsewhere on the European continent.