ADNOC Gas Announces $5 Billion Contracts Following Final Investment Decision For Rich Gas Development Project

ADNOC Gas Plc, along with its subsidiaries, has announced a significant step forward by taking a Final Investment Decision (FID) and awarding $5 billion in contracts for the initial phase of its Rich Gas Development (RGD) Project. This marks a major milestone in the company's largest-ever capital investment. The project aims to expand processing units to boost throughput and operational efficiency at four facilities: Asab, Buhasa, Habshan (Onshore), and Das Island liquefaction facility (Offshore).

The RGD project is crucial for developing new gas reservoirs, which will enhance liquid gas exports and support the UAE's gas self-sufficiency. It will also provide essential feedstock for the country's growing petrochemical industry. ADNOC Gas plans to take FIDs on two additional phases at Habshan and Ruwais to increase production capacity further, meeting rising market demands.

Engineering, Procurement, and Construction Management (EPCM) contracts have been awarded in three tranches for phase 1 of the RGD project. Wood received a $2.8 billion contract for the Habshan facility. Two consortia, Petrofac and Kent Plc, secured contracts worth $1.2 billion for Das Island liquefaction facility and $1.1 billion for Asab and Buhasa facilities.

Fatema Al Nuaimi, CEO of ADNOC Gas, stated: "The FID and contract awards for the first phase of the Rich Gas Development project mark a significant milestone in ADNOC Gas' strategy to deliver +40% EBITDA growth between 2023 and 2029. This strategic investment is expected to deliver significant new value for our shareholders and enable continued sustainable growth for the company, our employees, and the UAE."

The first phase of the RGD project focuses on optimizing existing gas assets while unlocking new gas streams. This aligns with ADNOC Gas' long-term strategy aimed at growth and future-proofing its business. The project supports important growth initiatives planned between 2025 and 2029.

ADNOC Gas is committed to enhancing In-Country Value (ICV), planning to create hundreds of new technical positions by 2029. This initiative will contribute significantly to the UAE's economic development.

This strategic investment is expected to bring substantial value to shareholders while ensuring sustainable growth for ADNOC Gas, its workforce, and the UAE as a whole.

With inputs from WAM