Adnoc Gas and Borouge facilities suffer Iranian attacks
6 April 2026
Debris from Iranian drones intercepted by the UAE’s air defence systems has caused damage at the Habshan gas processing facility operated by Adnoc Gas in Abu Dhabi, killing one person on site, as well as at the petrochemicals complex operated by Borouge.
In a disclosure to the Abu Dhabi Securities Exchange (ADX) on 5 April, Adnoc Gas, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), said debris resulting from a successful interception by UAE air defences in the area caused damage to a limited number of facilities within the Habshan gas complex on 3 April.
The incident resulted in the death of an engineer working at the facility for Egyptian contractor Petrojet during evacuation. Four other contractors sustained minor injuries and were discharged from hospital after receiving treatment.
Specialised teams were immediately dispatched to isolate the affected area and begin a comprehensive assessment of the damage to the production line, which is ongoing, Adnoc Gas said.
“We are profoundly saddened by the loss of life and extend our deepest condolences to the family and loved ones of the deceased. Our thoughts are also with the injured colleagues, and we wish them a full and speedy recovery. The safety, security and wellbeing of our people remains our highest priority,” Fatema Al-Nuaimi, CEO of Adnoc Gas, said in the filing.
“We remain committed to delivering shareholder value. Our balance-sheet strength and capital discipline support the resilience of the company,” she added.
Adnoc Gas further said it is meeting domestic demand in the UAE through other facilities, with no impact on customer supply. “The company continues to actively collaborate with international customers and partners where needed,” it said in its disclosure.
The Habshan gas processing facility has been attacked at least twice in March during Iran’s ongoing war with Israel and the US.
Borouge incident
Authorities in Abu Dhabi reported fire damage at Borouge’s main petrochemical facility caused by fragments from a drone interception falling on the complex on 5 April. No injuries were reported, the Abu Dhabi Media Office said.
“Production activity in affected areas has been suspended following the incident whilst damage assessment and repairs are carried out,” the company said in a filing with ADX on 6 April.
The company also highlighted market conditions. “A global shortage of polyolefins is driving a strong recovery in prices in March, which has continued in April,” it said.
Borouge said it remains financially positioned to manage near-term impact. “Borouge retains significant financial resilience to navigate short-term operational disruption due to its strong cash generation and significant available liquidity.”
Borouge pointed to strong operating performance heading into the disruption. “In the first quarter of 2026, Borouge achieved high utilisation rates and was able to sell a significant proportion of its production during the month of March via alternative routes,” the statement said.
ALSO READ: Sultan Al-Jaber calls Strait of Hormuz blockade “economic terrorism”
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Adnoc Gas to rally UAE downstream project spending7 April 2026
-
Israel ramps up gas exports to Egypt7 April 2026
-
-
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Adnoc Gas to rally UAE downstream project spending
7 April 2026
Despite the impact of recent Iranian attacks on its assets, the gas processing business of Abu Dhabi National Oil Company (Adnoc Gas) is on course to emerge as the largest spending entity in the UAE’s downstream oil and gas sector this year.
Adnoc Group created Adnoc Gas, which began operating as a commercial entity in 2023, through the merger of its former subsidiaries Adnoc Gas Processing and Adnoc LNG. The consolidation of Adnoc’s gas processing and liquefied natural gas (LNG) operations formed one of the world’s largest gas processing entities, with a capacity of about 10 billion standard cubic feet a day (cf/d) across eight onshore and offshore sites, including Asab, Bab, Bu Hasa, Habshan and Ruwais.
The scale of its infrastructure – particularly its 3,250-kilometre pipeline network, which is being expanded under the $3bn Estidama project – positions Adnoc Gas as a critical enabler of both domestic industrial growth and export competitiveness.
Resilience amid geopolitical risk
The recent drone-related disruptions highlight the growing exposure of Gulf energy infrastructure to regional conflict. However, the limited operational impact reported by Adnoc Gas suggests a high degree of system redundancy and resilience, supported by networked infrastructure and diversified processing capacity.
This resilience is crucial as the company pushes ahead with its $20bn-$28bn capital programme for 2023-29. Continued investment despite security risks signals confidence in both project economics and the UAE’s ability to safeguard critical assets.
Rich Gas Development
At the core of Adnoc Gas’ expansion strategy is the Rich Gas Development (RGD) programme, which aims to increase processing capacity by 30% by 2030.
The RGD project will enable the development of new gas reservoirs, helping to boost gas liquids exports, support UAE gas self-sufficiency and provide feedstock to the country’s growing petrochemicals sector, Adnoc Gas says.
The first phase of the RGD project is under construction. Adnoc Gas awarded $5bn-worth of engineering, procurement and construction management (EPCm) contracts in three tranches for phase one last June – its largest-ever capital investment.
The contracts cover the expansion of key gas processing plants to increase throughput and improve operational efficiency across four facilities: Asab, Bu Hasa, Habshan (onshore) and the Das Island liquefaction facility (offshore).
The first tranche, valued at $2.8bn, was awarded to UK-headquartered Wood for the Habshan facility. The company said the contract value includes pass-through revenue and that it expects to recognise about $400m in EPCm revenue.
Wood’s scope includes upgrades and debottlenecking of the Habshan and Habshan 5 gas processing complexes and pipelines, including brownfield modifications and the installation of new facilities.
The remaining two tranches – $1.2bn for the Das Island liquefaction facility and $1.1bn for the Asab and Bu Hasa facilities – were awarded to UAE-based Petrofac and Dubai-based Kent, respectively.
Petrofac, separately, said it will provide EPCm services and oversee procurement and construction contracts for a new inlet facility; two gas dehydration and compression trains, each with a capacity of 420 million cf/d; and associated infrastructure at Das Island. The company will also upgrade existing facilities to increase capacity for collecting and transporting raw gas.
RGD growth phases
Adnoc Gas’ capital expenditure commitment of $20bn for the 2023-29 period is expected to rise to about $28bn as it targets final investment decisions (FIDs) on the second and third phases of the RGD programme in the first quarter of 2026.
These phases involve building a natural gas liquids (NGL) fractionation train at the Ruwais facility and a new gas processing train at Habshan. Adnoc Gas has selected main contractors for EPC works on both projects, although official contract awards are pending.
Italy’s Tecnimont has been selected for the Ruwais NGL Train 5 project, which will have a capacity of 22,000 tonnes a day, or about 8 million tonnes a year.
China-based Wison Engineering has been selected for the Habshan 7 gas processing train. The Habshan complex is one of the largest in the UAE and the wider Middle East and North Africa region, with a capacity of 6.1 billion cf/d across five trains and 14 processing units.
With Adnoc Group advancing its P5 programme to raise oil production capacity to 5 million barrels a day by 2027, higher volumes of associated gas are set to enter the grid. The new train at Habshan, scheduled for commissioning in 2029, will help process these additional volumes.
Bab Gas Cap development
As part of its upstream expansion plans, Adnoc Group is working to extract gas from four underdeveloped gas cap reservoirs at the Bab onshore field: Thammama A, B, F and H. The Thammama A, B and H reservoirs are expected to produce a combined 1.45 billion cf/d, while Thammama F is projected to produce 396 million cf/d.
Existing processing capacity at Habshan will be insufficient to handle these volumes. As a result, Adnoc Gas plans to build new facilities to process up to 1.85 billion cf/d of additional gas.
The company is planning a new gas processing plant in the Bab area, about 170 kilometres from Abu Dhabi, along with associated pipelines and supporting infrastructure, as part of the broader Bab gas cap development project.
Adnoc Gas has divided the EPC scope into four packages. It completed contractor prequalification in February and is expected to issue main EPC tenders in the second quarter.
The company’s capital expenditure commitment could exceed $30bn once it reaches FID on the Bab gas cap development, which is expected later this year.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16281839/main.gif -
Israel ramps up gas exports to Egypt
7 April 2026
Israel’s gas flows to Egypt have returned to pre-war levels after restarting on 4 April, helping to ease the ongoing gas shortage in the North African country.
Around 1.1 billion cubic feet a day is being transported by pipeline from Israel’s Leviathan and Tamar gas fields, according to a Bloomberg report.
This is the same level that was being transported prior to Israel shutting down production from its offshore gas fields due to security concerns, and halting flows to Egypt on 28 February.
Despite having its own gas reserves, Egypt is a net importer of natural gas and has been impacted by the surge in global prices since the US and Israel started their war with Iran.
Last month, Egypt increased the prices of several petroleum products and natural gas for vehicles due to higher global energy prices.
On 9 March, Egypt raised the price of natural gas for vehicles by 30% to E£13 ($0.25) a cubic metre.
Egypt’s Petroleum & Mineral Resources Ministry said the increase was introduced due to “exceptional circumstances” resulting from geopolitical developments in the Middle East and their direct impact on global energy markets.
It said that the regional conflict had led to a significant increase in import and domestic production costs.
Egypt, the Middle East and North Africa region’s biggest liquefied natural gas (LNG) importer, is facing uncertainty over its LNG supplies in the coming months.
Between March 2025 and February 2026, Egypt imported 9,440 kilotonnes of LNG, with the majority purchased under short-term agreements, mainly with third parties such as trading houses.
Last year, it was reported that Egypt had signed deals for around 150 cargoes through to the summer of 2026.
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16280784/main.jpg -
Egypt gas sector activity surges amid regional conflict
7 April 2026
There is a surge of activity in Egypt’s gas sector as investors pour money into boosting domestic production and the country makes deals to leverage its existing liquefied natural gas (LNG) export infrastructure.
The increase in activity has come as the disruption to shipping through the Strait of Hormuz continues to prevent the shipment of around 20% of the world’s LNG supplies to consumer nations.
While Egypt remains a net importer of natural gas, its geographical position, significant gas reserves and existing infrastructure, including two LNG export terminals, mean it can potentially capitalise on the current supply crunch.
Harmattan development
On 6 April, Arcius announced the final investment decision (FID) to develop the Harmattan gas field offshore Egypt.
Arcius is a joint venture between UK-based BP and the UAE’s Adnoc, focused on developing gas assets in Egypt and the wider Eastern Mediterranean.
The company acquired the El-Burg offshore concession area, which includes the Harmattan field, in February.
An engineering, procurement, installation and commissioning (EPIC) contract for the project has been awarded to Egypt’s Enppi, while Cairo-based Petrojet and Petroleum Marine Services (PMS) have been awarded work as subcontractors.
In a statement, Naser Al-Yafei, the chief executive of Arcius, said: “The FID to develop the Harmattan field marks an important milestone in advancing one of our first projects in Egypt toward production.”
Idku LNG
UK-based Shell also held a meeting with Egypt’s Petroleum Minister Karim Badawi recently, with talks focusing on increasing domestic natural gas production and utilising the Idku LNG export terminal.
The terminal has a nameplate capacity of 7.2 million tonnes a year, but is not currently operated at full capacity.
The Idku facility is owned by a consortium of companies, with Shell and Malaysia’s Petronas holding the biggest stakes.
Gas corridor
On 30 March, Egypt signed a natural gas cooperation agreement with Cyprus, laying the groundwork for a regional gas corridor that will allow Nicosia to transport its gas to Egypt to use its export infrastructure.
The signing ceremony took place on the sidelines of a conference in Cairo, where both parties agreed to cooperate on the development and exploitation of gas resources.
The text of the agreement focused on technical and commercial aspects of the deal, establishing a basis for future negotiations.
Under the agreed terms, Cyprus’ gas will be processed in Egypt’s liquefaction facilities before being shipped to export markets.
The agreement built on a memorandum of understanding (MoU) signed in February last year, in which Egypt agreed to buy gas from Cyprus’ Aphrodite field.
Block 6
It is also expected that Italy’s Eni, which operates Cyprus’ Block 6 concession with France’s TotalEnergies, will announce FID for the development of the Kronos field in the coming weeks.
The field has reserves of 3.1 trillion cubic feet and, under current plans, the field’s gas will be transported to Egypt via pipeline before being exported from Egypt’s Damietta LNG terminal.
Future investment
As a net importer of natural gas, Egypt faces short-term economic problems due to the current high-price environment, forcing the country to pay more for energy imports.
While this is a major setback for the country and is likely to erode its foreign currency reserves over the coming months, the current global shortage of natural gas could lead to increased investment in the country’s oil and gas sector.
This could accelerate existing project plans within the sector as well as the development of new projects.
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16280782/main.jpg -
Bapco Energies reports Iranian drone attack on facility
6 April 2026
Bahrain’s state energy conglomerate, Bapco Energies, said a fire broke out at one of its storage facilities following a drone strike, in the latest attack by Iran on the kingdom’s energy and industrial assets amid its ongoing war with Israel and the US.
The tank fire, which resulted from the 5 April drone attack, has been fully extinguished and the situation is under control, Bapco Energies said.
The state enterprise said the attack caused no injuries, adding that it is assessing the damage.
“Emergency response teams acted immediately, working closely with the Civil Defence and relevant authorities to contain the incident and safeguard the site. The safety of our employees remains a top priority,” Bapco Energies said in its statement.
This is understood to be at least the third major Iranian attack on a Bahraini energy complex, after Bapco Energies declared force majeure across its operations last month following two missile strikes on the Sitra oil refinery on 5 and 9 March.
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/16271286/main.jpeg -
Large-scale IPPs drive UAE power market6 April 2026
State utility Emirates Water & Electricity Company (Ewec) recently announced it had received four bids for the development of the 3.3GW Al-Nouf independent power producer (IPP) project in Abu Dhabi.
The facility is scheduled to be one of at least four major IPP projects to reach contract award this year as the IPP procurement model becomes increasingly popular in the UAE for large-scale power generation projects.
The four IPP projects include the planned 2.5GW Taweelah C combined-cycle gas turbine plant, the 1.5GW Al-Zarraf solar photovoltaic (PV) plant and the 1.5GW Madinat Zayed open-cycle gas turbine plant.
As of the beginning of April, these accounted for $9.3bn, or 92%, of total power projects under bid evaluation. To put that into context, the UAE’s power market recorded its highest annual total for contract awards on record in 2025, with $11.8bn in confirmed awards.
Three of these were IPP projects, making up $8.1bn, or 69%, of total awards. In 2024, that number was lower again, with just one IPP project accounting for 26% of total power awards.
The last time contract awards surpassed $5bn was in 2018, when the Hamriyah combined-cycle plant accounted for 21%.
IPP awards
Among recent awards, a consortium of France’s Engie and Abu Dhabi Future Energy Company (Masdar) signed a contract in November to develop the 1.5GW Khazna solar PV IPP.
A month previously, Etihad Water & Electricity (EtihadWE) and South Korea’s Kepco won the award to develop a 400MW battery energy storage system (bess) project following the same IPP model.
That same month, Abu Dhabi’s landmark $6bn solar plant and 19GWh bess project entered construction, with Larsen & Toubro (India) and Power China working as contractors.
This project can be considered somewhat of an outlier, inflating the total value of awards in 2025. Otherwise, power contract awards remained broadly in line with the $5.7bn-worth of contract awards the year before.
Project pipeline
Looking further into the pipeline, the trend looks set to continue, with two IPP projects currently under main contract bidding, representing almost all of the $3.7bn-worth of projects at this stage.
The first, and by far, the largest concerns the seventh phase of Dubai Electricity & Water Authority’s (Dewa) Mohammed Bin Rashid Al-Maktoum Solar Park, which is estimated to cost $3.4bn.
Phase seven will add 2,000MW from PV solar panels and include a 1,400MW bess with a six-hour capacity.
The other relates to the Al-Sila wind IPP, a greenfield renewable energy project with a generation capacity of up to 140MW. When fully operational, it will more than double the existing wind generation capacity in the UAE.
Five of the six IPP projects in the pipeline are being procured by Abu Dhabi’s Ewec, which also continues to advance its solar PV programme as part of plans to reach 10GW of capacity by 2030.
The offtaker told MEED that, following the groundbreaking of the Abu Dhabi bess project, also known as PV5, it has been seeking government approvals to release a request for proposals for PV6 and PV7. If all goes according to plan, the expression of interest process should be launched soon.
Transmission
Beyond generation, there remains a steady flow of transmission infrastructure investment, led by Taqa Transmission, which awarded $830m across 11 grid projects last year.
The largest of these involves a $240m contract to build three 400kV substations in Abu Dhabi. Larsen & Toubro, Germany’s Siemens Energy and Japan’s Toshiba are working as the main contractor.
Total power transmission contracts reached $2.8bn in 2025, a slight increase from $2.5bn the year before.
Transmission and distribution upgrades have become central to maintaining grid stability and integrating intermittent renewables. Ewec and Taqa are expanding 400kV and 132kV networks across Abu Dhabi and the Northern Emirates, while Dewa continues to reinforce its cable and substation systems in Dubai. These works are vital precursors to the next phase of large-scale solar and battery storage integration.
Waste-to-energy
Waste-to-energy (WTE) is becoming an increasingly important part of the UAE’s infrastructure pipeline as the country seeks to reduce landfill dependence and diversify its power mix through alternative generation sources.
In Ajman, Ajman Sewerage Private Company is progressing the fourth-phase expansion of its sewerage system, which includes the flagship sludge-to-energy (S2E) facility. Belgium’s Besix has been appointed as the engineering, procurement and construction contractor.
In Sharjah, Emirates Waste to Energy Company, a joint venture of Beeah Group and Tadweer Group, is planning the second phase of its WTE treatment plant. The estimated $200m expansion is expected to almost double the facility’s annual output to 60MW, while increasing processing capacity to 600,000 tonnes of hard-to-recycle waste a year.
It is understood that a consortium led by Samsung E&A and China Everbright Environment Group has submitted the lowest bid, with a contract award expected in the coming months.
Meanwhile, Dubai Municipality issued a tender in February for consultancy services related to the second phase of the Warsan WTE Plant. The scheme is estimated to cost $500m and follows the emirate’s first major WTE public-private partnership project, which entered full commercial operations in 2024.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16270109/main.gif