ADNOC Gas announced today that it has taken a final investment decision and awarded $5 billion in contracts for the first phase of its Rich Gas Development (RGD) Project, marking a key milestone in the company’s largest-ever capital investment.
“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 percent 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,” stated Fatema Al Nuaimi, CEO of ADNOC Gas.
Contracts to expand key processing units
The contracts involve expanding key processing units to increase throughput and improve operational efficiency across four ADNOC Gas Facilities: Asab, Buhasa, Habshan (Onshore) and the Das Island liquefaction facility (Offshore).
The company also intends to take FIDs on two additional phases of the Rich Gas Development project at Habshan and Ruwais to enable the delivery of greater production capacity to meet growing market demands.
The Rich Gas Development 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.
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Phase 1 to unlock new and valuable gas streams
ADNOC Gas awarded EPCM contracts in three tranches for phase 1. The first tranche, valued at $2.8 billion, has been awarded to Wood for the Habshan facility. In addition, ADNOC Gas awarded the remaining two tranches – $1.2 billion for the Das Island liquefaction facility and $1.1 billion for the Asab and Buhasa facilities – to two consortia: Petrofac and Kent Plc.
Phase 1 of the Rich Gas Development project focuses on optimizing and debottlenecking existing gas assets while unlocking new and valuable gas streams. As part of ADNOC Gas’ long-term strategy, which focuses on growth and futureproofing its business, the Rich Gas Development project aligns with the company’s vision to deliver important growth initiatives between 2025 and 2029.
Additionally, the project highlights ADNOC Gas’ commitment to enhancing In-Country Value (ICV), with plans to create hundreds of new, field-based technical positions by 2029, further contributing to the UAE’s economic growth.
