ADNOC Gas approves $5bn first phase of Rich Gas Development project
The gas processing arm of the Abu Dhabi National Oil Company, ADNOC Gas, has approved a $5bn investment and awarded contracts for the first phase of its Rich Gas Development (RGD) project – the largest capital investment in the company’s history.
The project aims to expand processing capacity and improve operational efficiency across four gas sites in the UAE: Asab, Buhasa, Habshan, and Das Island. It is expected to support ADNOC Gas’ goal of growing EBITDA by over 40% between 2023 and 2029, and to enhance gas self-sufficiency while boosting feedstock availability for the domestic petrochemicals sector.
Phase one of the project will focus on optimising and “debottlenecking” existing infrastructure to unlock new gas streams. Future phases, currently in planning, will extend to ADNOC Gas’ facilities at Habshan and Ruwais.
Engineering, procurement and construction management contracts have been awarded across three tranches, including a $2.8bn contract secured by Wood for the Habshan facility.
Petrofac and Kent Plc were jointly awarded $1.2bn for work on the Das Island liquefaction site, while a further $1.1bn has been earmarked for upgrades at Asab and Buhasa.
Fatema Al Nuaimi, CEO of ADNOC Gas, described the move as “a significant milestone” in the company’s strategy to expand capacity and shareholder value.
“This strategic investment is expected to deliver … new value for our shareholders and enable continued sustainable growth for the company, our employees, and the UAE,” she said.
The RGD project forms part of ADNOC Gas’ broader five-year plan, which includes new gas development, infrastructure upgrades and in-country value creation.
ADNOC Gas said it remains on track to take final investment decisions on two further project phases in the coming years.
Last year, the company outlined its planto invest $13bn in domestic and international opportunities in the next five years and aims to more than double its LNG production capacity by 2028.
