Mitsui & Co. has announced a strategic investment, acquiring a 10% stake in the $5.5 billion Ruwais liquefied natural gas (LNG) project in the United Arab Emirates. This move, unveiled on Thursday, signifies Mitsui’s return to a region pivotal to its initial foray into the LNG sector in the 1970s.
Led by Abu Dhabi National Oil Co. (ADNOC), which holds a 60% share, the Ruwais project aims to commence operations in 2028 with an annual production capacity of 9.6 million tonnes. The project consortium includes major industry players such as Shell, BP, and TotalEnergies, with construction handled by a joint venture involving Japan’s JGC Holdings, France’s Technip Energies, and UAE-based NMDC Energy.
Mitsui’s $550 million investment will boost its overall LNG production capacity to 9 million tonnes annually, positioning the Middle East as its top LNG-producing region. This investment aligns with Mitsui’s medium-term plan, recognizing LNG as a key transitional fuel toward cleaner energy solutions.
The UAE project holds significant importance for Mitsui amidst global geopolitical challenges affecting other ventures. U.S. sanctions have delayed gas procurement from Russia’s Arctic LNG 2 project, and insurgency in Mozambique has stalled another initiative. The Ruwais project, therefore, not only strengthens Mitsui’s LNG portfolio but also secures a stable supply source amid these uncertainties.
Additionally, the project’s environmental strategy includes powering core facilities with renewables and nuclear energy, substantially reducing carbon emissions compared to traditional LNG plants. This aligns with global shifts towards more sustainable energy practices, reinforcing the project’s long-term viability and strategic value for Mitsui and Japan.
