Adnoc’s gas and LNG unit, Adnoc Gas, has taken the final investment decision on its Rich Gas Development (RGD) project. It also awarded $5 billion in contracts for the first phase of the project in the UAE.
According to a statement by Adnoc Gas, the contracts involve expanding key processing units to increase throughput and improve operational efficiency across its onshore Asab, Buhasa, Habshan facilities, and the Das Island liquefaction facility.
Adnoc Gas said the RGD project will enable the development of new gas reservoirs, which are key to boosting liquid gas exports, supporting gas self-sufficiency in the UAE, and providing essential feedstock to the country’s growing petrochemical industry.
EPCM contracts have been awarded in three tranches for phase 1.
The first tranche, valued at $2.8 billion, has been awarded to Wood for the Habshan facility.
Moreover, the remaining two tranches – $1.2 billion for the Das Island liquefaction facility and $1.1 billion for the Asab and Buhasa facilities – have been awarded to two consortia: Petrofac, and Kent.
Additional phases
Adnoc Gas said it intends to take FIDs on two additional phases of the RGD project at Habshan and Ruwais to enable the delivery of greater production capacity to meet growing market demands.
“The FID and contract awards for the first phase of the Rich Gas Development project mark a significant milestone in AdnocGas’ strategy to deliver +40 percent Ebidta growth between 2023 and 2029,” Fatema Al Nuaimi, CEO of Adnoc Gas, said.
Adnoc owns a 70 percent stake in Adnoc LNG, which produces about 6 mtpa of LNG from its facilities on Das Island.
In June 2024, it made the final investment decision to build its LNG export terminal in UAE’s Al Ruwais.
Also, Adnoc Gas said in November 2024 that it expects to spend about $5 billion to buy a 60 percent operating interest from its parent company Adnoc in the Al Ruwais LNG export plant.
The LNG project will consist of two 4.8 mtpa trains with a total capacity of 9.6 mtpa, more than doubling Adnoc’s existing UAE LNG production capacity to around 15 mtpa.
