United Arab Emirates: TotalEnergies Strengthens its Position in the Emirates through its Partnership in Ruwais LNG

Rhea-AI Summary

TotalEnergies has acquired a 10% stake in the Ruwais LNG project in partnership with ADNOC, Shell, bp, and Mitsui. The Ruwais LNG project, set to launch in the second half of 2028 in Abu Dhabi, will feature two liquefaction trains with a total capacity of 9.6 million tons per year.

This project will use full-electric liquefaction trains powered by clean energy from the UAE grid, making it one of the world's lowest-carbon intensity LNG plants.

TotalEnergies and its partners aim to meet growing global demand for lower-carbon gas while supporting the transition to cleaner energy.

TotalEnergies, already a major player in the LNG market, plans to increase natural gas's share in its energy mix to 50% by 2030.

The project also aims to boost local development and create skilled jobs for UAE nationals.

Positive

• TotalEnergies acquires a 10% stake in a major LNG project, potentially increasing revenue.
• Ruwais LNG’s production capacity set at 9.6 million tons per year.
• The project will utilize low-carbon technology, aligning with global sustainability trends.
• Start-up in 2028 offers long-term growth potential.
• Project supports local job creation and economic development in Abu Dhabi.

Negative

• Project start-up is delayed until the second half of 2028, potentially impacting near-term revenue.

Insights

Financial Analyst

TotalEnergies' 10% stake in the Ruwais LNG project represents a strategic move that aligns with its ambition to increase the share of natural gas in its sales mix to nearly 50% by 2030. The company's integrated position across the LNG value chain enhances its ability to leverage economies of scale and optimize costs.

The project’s capacity of 9.6 million tons per year is significant and with partners like ADNOC, Shell, bp and Mitsui, the collaboration represents a substantial consortium of expertise and resources. This partnership reduces risks and capital expenditure for each participant, while also promising a steady revenue stream through long-term contracts once the plant becomes operational in the second half of 2028. Investors should recognize the potential for stable cash flows from this venture, given the increasing global demand for LNG as a transitional fuel.

However, the project's start-up timeline, extending over five years, introduces an element of time risk. Market conditions, regulatory changes and technological advancements could affect the project's viability and profitability. Therefore, it’s prudent for investors to monitor the project's progress and any changes in global LNG market dynamics.

Market Research Analyst

The Ruwais LNG project positions TotalEnergies advantageously in the context of growing global demand for LNG. According to industry forecasts, natural gas demand is expected to rise, driven by its role as a cleaner alternative to coal and oil. This project’s low-carbon intensity will make it more appealing to eco-conscious buyers, placing TotalEnergies at the forefront of the transition to greener energy.

The strategic location in Abu Dhabi, coupled with the UAE’s commitment to boosting local industrial ecosystems and creating skilled jobs, further strengthens the project's market positioning. The involvement of reputable partners like Shell and bp adds credibility and technical prowess, enhancing investor confidence.

However, geopolitical dynamics in the Middle East and fluctuating energy prices could impact the project's market potential. Investors should consider these factors and stay updated with regional developments that might influence the project's success.

Sustainability Expert

The emphasis on low-carbon intensity and the use of clean power from the UAE's grid make the Ruwais LNG project a noteworthy step in the decarbonization efforts within the energy sector. By leveraging advanced technologies for safety, efficiency and emission reduction, TotalEnergies simultaneously addresses regulatory requirements and increasing investor demand for sustainable practices.

From a long-term perspective, the project's adherence to high environmental standards could provide a competitive edge as the world shifts towards stricter carbon regulations and sustainability benchmarks. This proactive approach may also attract environmentally-conscious investors and partners, aligning with global sustainability goals.

However, the project's ultimate impact on TotalEnergies’ carbon footprint will depend on its execution and operational efficiency. Continuous innovation and adherence to sustainability practices will be important in maintaining its low-carbon footprint and securing long-term benefits.

PARIS--(BUSINESS WIRE)-- Regulatory News:

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) joins, with a 10% interest, the Ruwais LNG project alongside national company ADNOC (60%), Shell (10%), bp (10%) and Mitsui (10%).

Launched by ADNOC in June 2024, Ruwais LNG is a liquefied natural gas (LNG) project located in Al Ruwais Industrial city, in Abu Dhabi. The project includes two liquefaction trains with a total capacity of 9.6 million tons per year. Start-up is expected in the second half of 2028.

The project applies the highest standards to reduce emissions: its full-electric liquefaction trains will be supplied with clean power by the UAE’s grid, making it one of the world’s lowest-carbon intensity LNG plants. The facility will also leverage the latest technologies to enhance safety, drive efficiency and minimize emissions.

“We are delighted to join forces with our long-standing partner ADNOC on the development of this new LNG project. Last year at COP28, TotalEnergies and ADNOC both committed to lead the Oil & Gas Decarbonization Charter to reduce the industry’s GHG emissions. With Ruwais LNG, we are putting this principle into practice with one of the world’s lowest-carbon intensity LNG plants, allowing natural gas to fully play its role of transition fuel", said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“We are delighted to welcome bp, Mitsui & Co., Shell, and TotalEnergies as partners in ADNOC’s Ruwais LNG project, which will be one of the world’s lowest carbon-intensive LNG facilities. 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”, said His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO.

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TotalEnergies, the world’s third largest LNG player
TotalEnergies is the world’s third largest LNG player with a global portfolio of 44 Mt/y in 2023 thanks to its interests in liquefaction plants in all geographies. The Company benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 Mt/y of regasification capacity in Europe, trading, and LNG bunkering. TotalEnergies’ ambition is to increase the share of natural gas in its sales mix to close to 50% by 2030, to reduce carbon emissions and eliminate methane emissions associated with the gas value chain, and to work with local partners to promote the transition from coal to natural gas.

TotalEnergies in the United Arab Emirates
TotalEnergies has been present in the United Arab Emirates for 85 years and is today one of the first foreign companies active in the country. In the Upstream sector, through its longstanding partnership with ADNOC, TotalEnergies in the UAE is one of the main contributors to the Company’s hydrocarbon production with 354,000 boe/d in 2023. TotalEnergies in the UAE continues to grow in the renewable sector, especially in the field of distributed generation where it holds a leading position. The Company has also a top position in the manufacturing and marketing of a wide range of automotive and industrial lubricants with a blending plant, supplying the whole region. Societal and sustainable development is key for TotalEnergies in the UAE: the Company is actively committed with stakeholders such as Environment Agency Abu Dhabi, Emirates Foundation, ADMAF and is involved with UAE universities for the development of Emirati youth.

About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.

@TotalEnergies TotalEnergies TotalEnergies TotalEnergies

Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).

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TotalEnergies

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPR

Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com

Source: TotalEnergies SE

FAQ

What is TotalEnergies' involvement in the Ruwais LNG project?

TotalEnergies has acquired a 10% stake in the Ruwais LNG project, joining partners ADNOC, Shell, bp, and Mitsui.

When is the Ruwais LNG project expected to start?

The Ruwais LNG project is expected to start in the second half of 2028.

How much LNG will the Ruwais LNG project produce annually?

The Ruwais LNG project will produce 9.6 million tons of LNG annually.

What makes Ruwais LNG one of the world's lowest-carbon intensity LNG plants?

Ruwais LNG will use full-electric liquefaction trains supplied with clean power from the UAE’s grid, minimizing carbon emissions.

How does TotalEnergies plan to meet growing demand for lower-carbon gas?

TotalEnergies, through its stake in Ruwais LNG, aims to provide lower-carbon gas to meet global demand and support energy transition.