Shell’s Post

More value with less emmission.

Shell’s investment in the Ruwais LNG project in Abu Dhabi, in partnership with ADNOC and other major energy companies, marks a significant step in expanding its LNG portfolio with a focus on sustainability. Here are the key insights: 1. Strategic Partnership: Shell’s 10% stake in the Ruwais LNG project strengthens its long-standing partnership with ADNOC. This collaboration highlights the strategic alignment of both companies towards energy-efficient and carbon-competitive LNG projects. 2. Project Scale and Capacity: The Ruwais LNG project will feature two LNG liquefaction trains with a total capacity of 9.6 million metric tonnes per annum (mmtpa). This significant capacity will enhance the UAE’s position in the global LNG market. 3. Sustainability Focus: The project will use an electric-powered liquefaction system and renewable power supply, reducing operational emissions compared to traditional gas-powered facilities. This aligns with Shell’s strategy to create more value with fewer emissions and supports global efforts to transition to cleaner energy sources. 4. Offtake Agreement: Shell has signed an agreement to offtake 1 mmtpa of LNG produced by the Ruwais facility, ensuring a steady supply for its global LNG portfolio. This offtake agreement underscores Shell’s commitment to securing LNG resources to meet growing demand. 5. Consortium and Leadership: ADNOC will hold a majority 60% share and serve as the lead developer and operator of the facility. Shell, BP, Mitsui, and TotalEnergies each hold 10%, reflecting a strong consortium of experienced energy companies. 6. Construction and Timeline: The engineering, procurement, and construction (EPC) contract has been awarded to a Technip-led joint venture, with construction set to begin soon in Al Ruwais Industrial City, Abu Dhabi. LNG deliveries are expected to start in 2028, providing a clear timeline for project milestones. 7. Economic and Environmental Impact: The project is expected to boost local economic development in Al Ruwais Industrial City, creating jobs and enhancing the industrial ecosystem. Environmentally, the project’s design aims to set a benchmark for low-emission LNG facilities, contributing to the broader goal of reducing greenhouse gas emissions in the energy sector.

I find this quite annoying. Companies making claims on "less emissions" in press announcements, and then not providing any concrete data to back this up. See for example this announcement by Shell in which they claim their LNG project is "carbon-competitive" (whatever that is) and has "lower operational emissions". No information is provided on: - what is the emission intensity of the LNG that is exported (from well to tanker)? - what does it mean to be "carbon-competitive"? what are the benchmarks? is that for the terminal only? for the exported LNG (well to tanker) or for the end-user? Only compared to other LNG suppliers? or also to pipeline alternatives? - what does it mean to have lower operational emissions? lower than who? it is great that renewable energy will be used to liquefy the gas; however, if the other operational emissions (between wellhead and LNG tanker) are high then the LNG may still not compare well against the competition. There is quite a bit of evidence from scientific articles and trade magazines that suggests that upstream emissions could be relatively high. Many gas fields in UAE contain natural CO2 and H2S and at the moment a lot of the co-produced CO2 is simply vented; there are some CCS projects that have been announced but it is unclear if and how that will impact the carbon intensity of this project and the exported LNG https://lnkd.in/eXM8buiW https://lnkd.in/eNMwPtwD UAE is not very transparent about their methane emissions; they make claims but apparently had not reported methane emissions yet in 2023 https://lnkd.in/ePxTH4-5 Bottom line: companies need to be much more transparent and publish carbon intensity calculations (and benchmark comparisons) IF they want to make claims of being low carbon, carbon competitive, lower operational emissions, etc. #carbontransparency

#BreakingNews: bp, Shell, TotalEnergies and Mitsui & Co., Ltd. are to be awarded a 10% equity stake each in the Ruwais LNG project with ADNOC Group retaining a 60% majority stake. Separately, ADNOC has signed several new long-term LNG sales commitments with international partners, including for the delivery of 1 million tonnes per annum (mtpa) with Shell and 0.6mtpa with Mitusi & Co., taking the committed Ruwais LNG production capacity to 70%. H.E. Dr. Sultan Al Jaber said: “As natural gas demand continues to increase, this world-class project will enable us to provide more lower-carbon gas to meet growing demand today while helping the world transition to a cleaner energy future. Additionally, the project will accelerate development in Al Ruwais Industrial City, boost the local industrial ecosystem and create more skilled private sector jobs for UAE Nationals.” #EnergyConnects #energynews #energyindustry #news #oott #adnoc #lngindustry #roadtonetzero

🌟💼 ADNOC Group's Groundbreaking #LNG Agreement 💼🌟 ➡️ In a landmark move for the #LNGindustry, the Abu Dhabi National Oil Company (#ADNOC) has struck a remarkable 15-year LNG agreement with ENN LNG (#Singapore) Pte. Ltd. This agreement, signed on December 20, 2023, from ADNOC's low-carbon #Ruwais project, represents a substantial commitment to sustainable #LNGproduction. This is a strategic decision that not only showcases ADNOC's foresight in long-term #energy #planning but also emphasizes the growing importance of environmentally responsible LNG projects on a global scale. ADNOC's agreement with ENN LNG signals a new era in LNG collaborations, focusing on #lowcarbonsolutions and setting new benchmarks for the industry. This #partnership is a clear indication of the shifting dynamics in the energy market, where sustainability and long-term planning are becoming paramount. 👀 Keep an eye on how this collaboration shapes the future of LNG and its role in a more sustainable energy landscape. 🔗 Learn More About This Significant Agreement: https://lnkd.in/ggSCmGt5

Here are additional insights and considerations that further highlight the significance of this project: 1. Strategic Partnerships • Risk Mitigation: By distributing the financial and operational risks among multiple stakeholders, the project can better navigate market fluctuations and geopolitical uncertainties. • Synergy and Expertise: Each company brings unique strengths and expertise, from Shell’s extensive LNG experience to BP’s advanced technological capabilities, Mitsui’s trading acumen, and TotalEnergies’ focus on sustainability. This synergy can enhance the project’s overall efficiency and innovation. 2. Capacity and Scope • Market Influence: With a capacity of 9.6 mmtpa, the Ruwais LNG project will significantly influence the global LNG supply chain, potentially stabilizing prices and ensuring supply security for importing nations. • Energy Transition: The scale of this project underscores LNG’s role as a transitional fuel that can help bridge the gap between high-emission fossil fuels and renewable energy sources. 3. Innovative Technology • Electric-Powered Liquefaction: Utilizing electric-powered liquefaction systems reduces the project’s carbon footprint, making LNG production more sustainable. • Renewable Integration: Access to renewable power sources for project operations aligns with global decarbonization goals, setting a precedent for future LNG projects to incorporate renewable energy. 4. Economic Impact • Local Development: The project will create numerous direct and indirect jobs, fostering economic growth and skill development in the region. • Infrastructure Enhancement: Investments in infrastructure, such as transportation and utilities, will benefit the broader community and support other industrial activities in Al Ruwais Industrial City. 5. Long-Term Vision • Supply Security: The long-term commitment to LNG deliveries starting in 2028 ensures a stable supply for global markets, which is crucial for countries transitioning away from coal and oil. • Strategic Planning: This long-term vision allows for strategic planning and investment in complementary infrastructure, such as regasification terminals and distribution networks. 6. Emission Reduction Goals • Corporate Sustainability: The project aligns with the sustainability strategies of the involved companies, who are increasingly focused on reducing their carbon footprints and meeting environmental, social, and governance (ESG) criteria. • Global Climate Goals: By contributing to lower global emissions, the project supports international climate agreements, such as the Paris Agreement, and helps countries meet their national determined contributions (NDCs). Additional Insights: • Geopolitical Influence: The UAE’s strengthened position in the global LNG market can enhance its geopolitical influence, providing leverage in international energy discussions and negotiations.

TotalEnergies’ involvement in the Ruwais LNG project is comprehensive and highlights several key strategic benefits. Here are some additional insights and considerations that further underscore the significance of this partnership: 1. Strengthened Market Position • Regional Integration: TotalEnergies’ participation in the Ruwais LNG project enhances its integration within the Middle Eastern energy landscape, providing strategic advantages in a region that is crucial for global energy supply. • Collaborative Synergies: Partnering with industry giants like ADNOC, Shell, BP, and Mitsui allows TotalEnergies to leverage collective expertise, share best practices, and optimize project execution. 2. Low-Carbon LNG Facility • Technological Leadership: By incorporating electric-powered liquefaction systems and utilizing clean power from the UAE’s grid, the Ruwais LNG project sets a benchmark for low-carbon LNG production, reinforcing TotalEnergies’ position as a leader in sustainable energy technologies. • Environmental Stewardship: The project’s low carbon intensity aligns with global efforts to combat climate change, enhancing TotalEnergies’ reputation as a responsible energy company committed to environmental sustainability. 3. Commitment to Decarbonization • Alignment with Global Goals: TotalEnergies’ participation in the Oil & Gas Decarbonization Charter and the Ruwais LNG project demonstrates a clear alignment with international climate agreements, such as the Paris Agreement, and supports the global transition to a low-carbon economy. • Innovation in Emission Reduction: The project’s focus on safety, efficiency, and minimal emissions showcases innovative approaches to reducing greenhouse gas emissions in the LNG sector, contributing to industry-wide decarbonization efforts. 4. Economic and Social Benefits • Local Economic Impact: The Ruwais LNG project will create high-quality jobs, stimulate local businesses, and contribute to the economic diversification goals outlined in the UAE’s Vision 2030. • Community Development: By enhancing the industrial ecosystem in Al Ruwais Industrial City, the project supports broader social and economic development, improving the quality of life for local communities. 5. Strategic LNG Expansion • Global LNG Leadership: TotalEnergies’ expansion in the LNG sector reinforces its position as a global leader, enabling the company to meet growing global demand for cleaner energy sources and support energy transition goals. • Value Chain Integration: TotalEnergies’ integrated approach across the LNG value chain—from production to transportation and trading—enhances operational efficiencies and market reach, positioning the company to capitalize on emerging opportunities in the LNG market.

BP to Take 10% Stake in Abu Dhabi’s Ruwais LNG Project, Strengthening Middle East Presence BP p.l.c. (BP) confirmed today its intention to acquire a 10% interest in the Ruwais liquefied natural gas (LNG) project in Al Ruwais Industrial City, Abu Dhabi. This move, subject to necessary regulatory approvals, signifies BP’s ongoing investment in gas growth in the Middle East and its strategy to expand its global LNG portfolio. Strategic Partnerships and Investment The Ruwais LNG project, led by ADNOC with a 60% interest, also includes Mitsui & Co, Shell, and TotalEnergies, each holding 10% stakes. ADNOC had previously announced its final investment decision for the project’s development in June. BP CEO Murray Auchincloss expressed […] - https://lnkd.in/dTNCQRw8 #automotive #evs #ev #electricmobility #emobility #ebikes #fleets #evfleet #evnews #autonews #electricvehicles #electricvehicle #automotiveindustry #automotivejobs #cleantech #cleanenergy #hydrogen #lithium #evbattery #sustainability #climatechange #abudhabi #asia #bp #partnership #uae

Europe and Arab Gulf further building bridges for the energy transition.

ADNOC Group has sealed agreements for liquefied #naturalgas (#LNG) #offtake and an equity position in NextDecade's Rio Grande LNG (RGLNG) export project located in #Texas, #UnitedStates. This is perceived as the UAE player’s first strategic investment foray in the #USA, which complements its efforts to expand its lower-carbon LNG portfolio to meet growing #gas demand. #oilgas #energy #oilandgasnews #offshoreenergy #oilandgas #LNGofftake