Adnoc Gas awards contracts to expand UAE gas reserves

Adnoc Gas, a subsidiary of the state-backed Abu Dhabi National Oil Company (Adnoc), has awarded contracts worth $5 billion for the first phase of its Rich Gas Development (RGD) project.

The RGD project is intended to boost liquid gas exports and support the UAE’s gas self-sufficiency.

The contracts were awarded following a final investment decision (FID) the company said in a statement to the Abu Dhabi Securities Exchange.

Key processing units will be expanded to increase throughput and improve operational efficiency across Asab, Buhasa, Habshan (onshore), and the Das Island liquefaction facility (offshore).

Adnoc Gas intends to take FIDs on two additional phases of the RGD project at Habshan and Ruwais to increase production capacity to meet growing market demands.

In its 2024 integrated report, the company said that the RGD project, which will facilitate the development of new gas reservoirs, is expected to add 1.5 billion standard cubic feet per day in gas processing capacity.

The engineering, procurement, construction and management contracts were awarded in three tranches for the first phase of the project.

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The first tranche, valued at $2.8 billion, was awarded to UK-based Wood for the Habshan facility.

The remaining tranches – $1.2 billion for the Das Island liquefaction facility and $1.1 billion for the Asab and Buhasa facilities – were won by consortiums led by UK’s Petrofac and UAE’s Kent.

The FID and contract awards for the first phase of the project aim to deliver more than 40 percent Ebitda growth between 2023 and 2029, said Fatema Al Nuaimi, CEO of Adnoc Gas.