ADNOC Gas Approves $5 Billion for First Phase of Rich Gas Project, Its Biggest Investment Ever

ADNOC Gas Approves $5 Billion for First Phase of Rich Gas Project, Its Biggest Investment Ever

ADNOC Gas, a company owned by Abu Dhabi’s national oil firm, said on Tuesday that it has given out $5 billion worth of contracts for the first part of its Rich Gas Development (RGD) Project. This is the company’s biggest investment so far.

ADNOC Investment Overview (Simplified)

ADNOC awarded engineering and construction contracts in three parts. The first contract, worth $2.8 billion, went to the company Wood for work at the Habshan site. The second and third contracts were given to groups led by Petrofac and Kent Plc — one is worth $1.2 billion for the Das Island gas plant, and the other is $1.1 billion for work at the Asab and Buhasa sites.

In the first stage of the project, ADNOC will focus on improving its current gas facilities and getting more value from them. This includes expanding gas processing units to increase both capacity and efficiency at four major locations: Asab, Buhasa, Habshan (onshore), and Das Island (offshore).

ADNOC also plans to decide soon on more investments at Habshan and Ruwais to produce even more gas in the future and meet rising demand.

The company says this project will help increase its earnings by over 40% by 2029.

The goal of the RGD project is to develop new gas sources, boost exports of liquefied natural gas (LNG), make the UAE more self-sufficient in gas, and provide important raw materials for the country’s growing chemical industry.

Financial Update

ADNOC Gas had strong results in 2024. It made a record profit of $5 billion, which is 13% more than the previous year. Its earnings before interest and other costs (EBITDA) grew by 14% to $8.65 billion, with a steady profit margin of 35%. The company also had $4.58 billion in free cash flow.

In April, ADNOC Gas announced it would invest over $13 billion in both local and international projects over the next five years to increase its LNG export capacity.

Recognition

ADNOC Gas is ranked 12th on Forbes Middle East’s list of Top 100 Listed Companies for 2024.

Published: 11th June 2025

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