Adnoc Gas, a subsidiary of the state-owned Abu Dhabi National Oil Company (Adnoc), has announced the award of $5bn in contracts for the initial phase of its Rich Gas Development project, marking the final investment decision in one of its most significant transformation initiatives to date. The company expects a 40% increase in its earnings before interest, taxes, depreciation and amortisation (Ebitda) by 2029 through this programme.
Contract allocation and targeted facilities
The engineering, procurement and construction management contracts were divided into three packages. Scotland-based professional services firm Wood secured a $2.8bn deal for works at the Habshan facility. Two additional contracts were awarded to a consortium comprising London-based Petrofac and Dubai’s Kent. Petrofac will receive $1.2bn for activities on Das Island, while Kent will handle operations in Asab and Buhasa under a $1.1bn agreement.
These four sites form a core part of Adnoc Gas’s existing gas infrastructure. The company aims to improve operational efficiency through upgrades to key processing units and removal of system bottlenecks. The project will also enhance gas flow by tapping into new reservoirs.
Long-term outlook and industrial schedule
The Rich Gas Development project represents the first step in a three-phase strategy. The next two phases, planned for Habshan and Ruwais, have not yet been scheduled. However, the company stated that they are intended to increase production capacity to meet growing market demand.
Adnoc Gas had first indicated its intention to launch the project in 2025. Another major investment, the Bab Gas Cap development, is scheduled for 2026. According to the company, these projects are aimed at strengthening the UAE’s energy self-sufficiency and supporting feedstock supply for the national petrochemical sector.
Financial impact and commercial expansion
In May, Adnoc Gas reported a 7% year-on-year rise in net income, reaching $1.27bn, supported by sustained domestic demand and broader economic growth. The company, which has access to 95% of the country’s natural gas reserves, continues to expand exports of liquefied petroleum gas, liquefied natural gas and naphtha.
Infrastructure development is also part of a broader strategy to enhance the stock’s market liquidity. By raising the free float by 4%, now reaching 9%, Adnoc sold 3.1bn shares of the subsidiary to institutional investors.
