ADNOC Gas, a subsidiary of the UAE's energy giant Abu Dhabi National Oil Company (ADNOC), has signed a significant $5 billion contract for a natural gas development project named the Rich Gas Development (RGD). This marks the commencement of the project's first phase, which aims to expand ADNOC Gas's capacity and enhance natural gas self-sufficiency.
The RGD project is set to boost ADNOC Gas's EBITDA by 40% by 2029. It represents one of the largest capital expenditures in the company's history, focusing on developing new gas reservoirs, increasing LNG exports, and supporting the UAE's growing petrochemical industry with essential raw materials.
The first phase includes expanding key processing units at four gas facilities to improve operational efficiency and address capacity constraints. The engineering, procurement, and construction management (EPCM) contracts have been awarded in three packages. UK-based engineering firm Wood secured a $2.8 billion contract for the Habshanu unit. Petrofac and Dubai's Kent, leading two consortiums, won contracts for the Das Island offshore liquefaction facilities ($1.2 billion) and the Asab and Buhasa facilities ($1.1 billion), respectively.
ADNOC Gas controls 95% of the UAE's gas reserves. In the first quarter, the company reported a 7% increase in net profit to $1.27 billion, driven by strong domestic gas demand and economic growth. Earlier this year, ADNOC sold approximately 3.1 billion shares in ADNOC Gas to boost trading activity and liquidity.
