ADNOC Approves US$6.2bn Abu Dhabi Gas Project

By Simon West

ADNOC has approved a US$6.2 billion investment to develop the offshore Umm Shaif Gas Cap in Abu Dhabi.

A final investment decision (FID) was reached alongside partners TotalEnergies, Eni and China National Petroleum Corporation (CNPC) and marks the latest step in ADNOC’s drive to expand gas production and strengthen its position in the global liquefied natural gas (LNG) market.

The project is expected to deliver more than 600 million standard cubic feet per day (cfd) of natural gas and associated gas liquids by 2030, equivalent to nearly 10% of the UAE’s current daily gas consumption.

“ADNOC is accelerating its integrated gas strategy to further harness the UAE's vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise,” said Sultan Ahmed Al Jaber, managing director and CEO of ADNOC.

“The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC’s position as a reliable gas supplier. Together with our international partners, we are building on decades of responsible stewardship of Abu Dhabi’s longest-operating offshore field to unlock lasting value for the UAE and our customers.”

The investment includes three engineering, procurement and construction (EPC) contracts worth US$5.1 billion covering large-scale offshore infrastructure. A further US$365 million will fund a 14-well drilling program to be carried out by ADNOC Drilling over 18 months using three existing rigs.

ADNOC holds a 60% interest in the project, with TotalEnergies retaining 20% and Eni and CNPC each with 10%. Production from the development is expected by 2030.

The project follows the award of the Bab Gas Cap concession, slated to unlock a further 1.5 billion cfd of gas and associates, and complements ADNOC’s plans to build a global LNG marketing and trading platform in Abu Dhabi targeting 47 million tons per year of marketable LNG capacity by 2035.

Breakbulk Middle East 2027 will take place in Dubai on February 2-3.