ADNOC approves $6.2 billion Umm Shaif Gas Cap development
ADNOC has taken a final investment decision (FID) worth $6.2 billion to develop the Umm Shaif Gas Cap in Abu Dhabi as the company looks to expand its gas production business.
The project will be developed in partnership with TotalEnergies, Eni, and China National Petroleum Corporation (CNPC), with first production expected by 2030.
The development is expected to release more than 600 million standard cubic feet per day of natural gas and associated gas liquids, which is equivalent to nearly 10% of the UAE’s current daily gas consumption.
Enhancing the UAE's energy security goals
The project will support domestic energy security while reinforcing the UAE’s position as a reliable supplier to global energy markets, ADNOC said in a statement.
The investment is part of ADNOC’s larger strategy to increase production from the UAE’s substantial gas reserves and expand its LNG portfolio as demand for natural gas continues to rise, driven by industrial growth and the increasing power requirements of AI infrastructure.
His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said, “ADNOC is accelerating its integrated gas strategy to further harness the UAE’s vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise. The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC’s position as a reliable gas supplier.”
The announcement follows the Supreme Council for Financial and Economic Affairs’ award of the Bab Gas Cap concession, which is expected to unlock a further 1.5 billion scfd of natural gas and associated gas liquids.
It also comes after ADNOC launched its integrated LNG marketing and trading platform targeting 47 million tonnes per annum of marketable LNG capacity by 2035.
As part of the development, ADNOC awarded three engineering, procurement and construction (EPC) contracts worth a combined $5.1 billion to consortiums comprising UAE and international contractors for offshore infrastructure works.
The project also includes a $365 million drilling and integrated drilling services programme, under which ADNOC Drilling will deliver 14 wells over an 18-month period using three existing rigs.
