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Adnoc Gas stalls decision on Ruwais NGL project

21 January 2026

 

Adnoc Gas is understood to be considering next steps regarding the progress of its project to install a fifth natural gas liquids (NGL) fractionation train at its Ruwais gas processing facility in Abu Dhabi.

The fifth NGL fractionation train will have an output capacity of 22,000 tonnes a day (t/d), or about 8 million tonnes a year.

Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), has adopted the design-update competition model to deliver the Ruwais NGL Train 5 project, MEED previously reported.

Contractors participating in the design-update competition for the project submitted commercial bids for engineering, procurement and construction (EPC) works by the deadline of 8 December, as part of the design‑update competition.

The design-update competition model involves the project operator selecting contractors to execute front-end engineering and design (feed) work on the project. The operator selects the contractor with the most competitive feed proposal to execute EPC works on the project, while also compensating the other contestants for their work.

Since receiving commercial bids from contractors in early December, however, Adnoc Gas is understood to have gone back to the drawing board to decide on the next course of action, according to sources.

Sources attribute the delay in contractor selection to bids received by Adnoc Gas that exceeded its budget.

In January 2025, MEED reported that Adnoc Gas had selected the following contractors to participate in the design-update competition for the Ruwais NGL Train 5 project:

  • JGC Corporation (Japan)
  • Technip Energies (France)
  • Tecnimont (Italy)

MEED previously reported that participants had submitted technical proposals for feed work on 6 October.

The Ruwais NGL Train 5 project represents the second phase of Adnoc Gas’ Rich Gas Development programme and is estimated to be valued at $3.5bn-$4bn, according to the company’s chief financial officer, Peter Van Driel.

In a call with journalists in November to discuss Adnoc Gas’ financial results for the third quarter of 2025, Van Driel said Adnoc Gas was expected to achieve a final investment decision on the Habshan 7 gas train project in the first half of 2026.

ALSO READ: Adnoc Gas capex budget to rise to $28bn by 2029

The scope of work on the Ruwais NGL Train 5 project covers the EPC of the following units:

  • NGL fractionation plant with a capacity of 22,000 t/d, including NGL fractionation facilities, downstream treatment units, sulphur recovery units, product storage, loading facilities and associated utilities, flares and interconnection pipelines with existing facilities;
  • Two propane liquefied petroleum gas storage tanks and one paraffinic naphtha storage tank;
  • Buildings – a central control building, outstations, substations and plant amenities;
  • Electrical power connections. Power is to be sourced from the nearby Transco substation via a direct underground cable to the plot location.

Adnoc Gas requires the feed on the project to be updated based on the design of Ruwais NGL Train 4, which has an output capacity of 27,000 t/d and was commissioned in 2014.

In December 2021, MEED reported that Adnoc Gas, then operating as Adnoc Gas Processing, had awarded Indian contractor Larsen & Toubro Hydrocarbon Engineering the main contract for a project to enhance the capacity of its NGL trains 1-4 at the Ruwais complex.

Adnoc Gas business

Adnoc Group announced the creation of Adnoc Gas through the merger of its subsidiaries Adnoc Gas Processing and Adnoc LNG in November 2022. Adnoc Gas began operating as a commercial entity on 1 January 2023.

The consolidation of Adnoc’s gas processing and liquefied natural gas (LNG) operations into Adnoc Gas has created one of the world’s largest gas-processing entities, with a processing capacity of about 10 billion standard cubic feet of gas a day at eight onshore and offshore sites, which include its Asab, Bab, Bu Hasa, Habshan and Ruwais plants.

The company also owns a 3,250-kilometre (km) gas pipeline network to supply feedstock to its customers in the UAE. This sales gas pipeline network is being expanded to over 3,500km through the estimated $3bn Estidama project.

The company will also acquire its parent Adnoc Group’s 60% share in the Ruwais LNG terminal project at cost in the second half of 2028. UK energy producer BP, Japan’s Mitsui & Co, UK-based Shell and French energy producer TotalEnergies are the other shareholders in the project, holding 10% stakes each.

Adnoc Gas share sale

In February 2025, Adnoc Group completed a marketed offering of approximately 3.1 billion shares in Adnoc Gas, raising $2.8bn from the exercise.

The offering consisted of 3,070,056,880 shares, representing 4% of the issued and outstanding share capital of Adnoc Gas.

Following the marketed offering of shares, Adnoc Group continues to hold the majority 86% of shares in Adnoc Gas.

The parent entity listed 5% of Adnoc Gas’ shares on the Abu Dhabi Securities Exchange in March 2023, in an initial public offering from which it raised about $2.5bn.

Abu Dhabi National Energy Company (Taqa) owns the remaining 5% shares in Adnoc Gas.

ALSO READ: Contractors submit prices for Habshan 7 project to Adnoc Gas

READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

> ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch
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Indrajit Sen

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