Adnoc said its planned low-carbon LNG project would proceed in Abu Dhabi's Al Ruwais Industrial City. The state-run energy company said Ruwais' proximity to Adnoc's current and future projects, as well as its established supplier base, were key factors in its decision. As the hub of operations for Adnoc and its operating companies, the selected site offers significant synergies and existing infrastructure that will be leveraged to improve project efficiency. "

The Ruwais plant is designed with electric processing facilities and will be powered by renewable energy and the nuclear grid, making it one of the least carbon-intensive LNG projects in the world, Adnoc said. Ruwais, at the center of Adnoc's downstream ambitions, has earmarked a multibillion-dollar expansion to boost its refining capacity to 1.5 million barrels per day by 2025, making it the largest refinery by capacity.

Adnoc Gas, a subsidiary of Adnoc, holds 95% of the UAE's natural gas reserves and is estimated to rank seventh globally. It also supplies more than 60% of the country's natural gas needs.

Adnoc Gas has signed a three-year supply agreement with TotalEnergies Gasand Power, a subsidiary of France's TotalEnergies, to export LNG. Europe, hoping to reduce its dependence on Russian gas, has been increasing imports of liquefied natural gas from the United States and the Gulf region. In February, Adnoc and German power company RWE announced the first delivery of supercooled fuel from the UAE to Germany.

In November, Qatar Energy signed two sales and purchase agreements with U.S. oil and gas producer ConocoPhillips to transport up to 2 million tonnes of LNG a year to Germany.

Global LNG trade will hit a high of $450 billion in 2022 as European demand surges and the region reduces its reliance on Russian gas imports, according to the International Energy Agency. Despite rising demand, LNG supply rose just 5.5 percent last year, largely due to maintenance at large export terminals and Freeport LNG's plant in Texas, one of the world's largest export hubs for the supercooled fuel.Editor/XingWentao