Daily Newsletter

05 October 2023

Daily Newsletter

05 October 2023

ADNOC awards $400m LNG technology supply contract to Baker Hughes

The contract is for ADNOC’s low-carbon LNG facility in the Al Ruwais industrial city.

Shivam Mishra October 05 2023

Abu Dhabi National Oil Company (ADNOC) has awarded a liquified natural gas (LNG) technology supply contract to Baker Hughes.

The contract, valued at more than $400m (Dh1.47bn), is for ADNOC’s low-carbon LNG facility in the Al Ruwais industrial city, Al Dhafrah, Abu Dhabi, and was awarded through ADNOC-backed Nuovo Pignone International.

Under the agreement, Baker Hughes will supply compression systems, powered by 75MW electric motors, to liquefy natural gas.

United Arab Emirates Government-backed ADNOC claimed that the Ruwais LNG plant will be the first LNG facility in the Middle East and North Africa to use sustainable energy, making it one of the LNG facilities with the lowest carbon intensity across the globe.

The Ruwais LNG project consists of two LNG trains with a combined capacity of 9.6 million tonnes per annum (mtpa).

Once operational, the facility is expected to more than double ADNOC's LNG production capacity, helping it cater to the rising demand for natural gas around the world.

The contract's award also highlights ADNOC's efforts to execute its decarbonisation and net-zero plans, for which the energy company revealed it has set aside $15bn.

ADNOC executive vice-president of downstream business management Fatema Al Nuaimi 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 decarbonisation, sustainability and innovation.

Baker Hughes executive vice-president of industrial & energy technology Ganesh Ramaswamy said: “Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of the carbon emissions footprint of natural gas.

“We are incredibly honoured that ADNOC Gas, for and on behalf of ADNOC, has chosen Baker Hughes as a trusted partner to support their vision to increase LNG production while further decarbonising their operations.”

ADNOC Gas recently awarded a $615m engineering, procurement, and construction contract to Petrofac for the Habshan carbon capture, utilisation and storage project.

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