ADNOC Gas Announces $8.2 Billion Expansion of Rich Gas Development Project
Key Takeaways
- •ADNOC Gas is committing over $8.2 billion to its Rich Gas Development project, building on a previous $5 billion investment in the same initiative.
- •Wison Engineering, a Chinese firm, has been awarded a $3.9 billion contract to construct a new gas processing train at the Habshah facility, the UAE's largest gas processing site.
- •The Ruwais LNG project is scheduled to commence operations in late 2028 and will increase ADNOC Gas's total LNG capacity to roughly 15 million tons per year.
- •The Ruwais facility will feature two 4.8-million-ton-per-year liquefaction trains equipped with artificial intelligence to improve safety, efficiency, and emissions performance.
- •ADNOC Gas CEO Fatema Al Nuaimi stated that the investments are central to the company's target of achieving 60% EBITDA growth by 2030.
ADNOC Gas, the gas business of the Emirati energy major ADNOC, announced that it will invest more than $8.2 billion in its Rich Gas Development project as part of a broader strategy to grow earnings before interest, tax, depreciation, and amortization (EBITDA) by 60% by 2030.
The expansion comes as the United Arab Emirates, which has committed to net-zero emissions by 2050, positions natural gas as a critical bridge fuel in the global energy transition. Worldwide LNG demand has surged in recent years, accelerated by Europe's push to reduce reliance on Russian pipeline gas and by rising energy needs across Asia.
The Rich Gas Development project encompasses multiple gas production facilities, including the Habshah gas project — the UAE's largest gas processing facility — and the Ruwais LNG project, also located in the UAE.
Of the total investment, $3.9 billion will be directed toward constructing a new gas processing train at the Habshah facility. The contract for this work has been awarded to Wison Engineering, a China-based engineering and construction firm. A further $4.3 billion will fund a new natural gas liquids (NGL) fractionation unit at the Ruwais LNG complex. This latest commitment builds on an earlier $5 billion investment in the Rich Gas Development project.
The Ruwais LNG project is poised to become one of the largest liquefied natural gas facilities in the Middle East, a region where Qatar currently dominates global LNG exports. Scheduled to begin operations in late 2028, the plant will more than double ADNOC Gas's existing LNG capacity, bringing it to approximately 15 million tons per year. The facility's two 4.8-mtpa liquefaction trains will incorporate artificial intelligence and advanced technologies to enhance safety, operational efficiency, and emissions performance, according to earlier statements from ADNOC.
ADNOC Gas has been actively expanding its natural gas portfolio in response to strong global demand projections, even as supply disruptions persist in the Persian Gulf region.
Fatema Al Nuaimi, Chief Executive of ADNOC Gas, described the announcement as a pivotal moment for the company. "This is a defining moment for ADNOC Gas. With the final investment decision and contract awards for the Rich Gas Development Project, we are not only accelerating one of the world's largest gas-processing growth programs — we are raising our ambition, targeting 60% EBITDA growth by 2030," she said.
"These strategic investments will significantly expand our natural gas processing and export capacity, unlock lasting value for our shareholders, and position ADNOC Gas at the heart of the UAE's energy future," Al Nuaimi added.
Source: OilPrice.com