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Adnoc Gas awards $5bn contracts for Rich Gas Development scheme

10 June 2025

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Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), has announced a final investment decision (FID) and awarded $5bn of contracts for the first phase of its Rich Gas Development project – the company’s largest-ever capital investment.

The contracts involve expanding key gas processing plants to increase throughput and improve operational efficiency across four Adnoc Gas facilities: Asab, Bu Hasa, Habshan (onshore) and the Das Island liquefaction facility (offshore).

Abu Dhabi Securities Exchange-listed Adnoc Gas awarded engineering, procurement and construction management (EPCm) contracts in three tranches for phase 1 of the Rich Gas Development scheme.

The first tranche, valued at $2.8bn, has been awarded to UK-headquartered Wood for the Habshan facility. In a separate statement, Wood said the contract value includes pass-through revenue, with the Aberdeen-headquartered company anticipated to recognise approximately $400m of revenue through EPCm services.

Wood’s scope includes the delivery of upgrades and debottlenecking for the existing Habshan and Habshan 5 gas processing complexes and pipelines, including brownfield modifications and installing new facilities.

The remaining two tranches – $1.2bn for the Das Island liquefaction facility and $1.1bn for the Asab and Bu Hasa facilities – have been awarded to UK-headquartered Petrofac and Dubai-based Kent, respectively.

Petrofac, separately, said it will provide EPCm services and oversee procurement and construction contracts to build a new inlet facility, two new gas dehydration and compression trains, each with a capacity of 420 million cubic feet a day, and associated infrastructure at the Das Island liquefaction facility.

Petrofac will also upgrade existing facilities to increase the site’s capacity for collecting and transporting raw natural gas. “These upgrades will significantly increase gas processing capacity to meet rising customer demand,” it said.

The Rich Gas Development project will enable the development of new gas reservoirs, which are key to boosting liquid gas exports, supporting gas self-sufficiency in the UAE, and providing essential feedstock to the country’s growing petrochemical industry, Adnoc Gas stated.

Phase 1 of the Rich Gas Development project focuses on “optimising and debottlenecking existing gas assets while unlocking new and valuable gas streams”.

As part of Adnoc Gas’ long-term strategy, the Rich Gas Development project “aligns with the company’s vision to deliver important growth initiatives between 2025 and 2029.”

Adnoc Gas further revealed it intends to take FIDs on two additional phases of the Rich Gas Development project at Habshan and Ruwais “to enable the delivery of greater production capacity to meet growing market demands”.

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 across 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.

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 (ADX) in March 2023, in an initial public offering (IPO) 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 bids for Shah gas expansion project

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Indrajit Sen

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