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Adnoc Gas expects FID on $8bn projects in Q1 2026

9 February 2026

Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), expects to achieve final investment decision (FID) on the second and third phases of its Rich Gas Development (RGD) programme within the first quarter of 2026.

The RGD scheme’s second and third phases are estimated to be worth $4bn each, potentially increasing Adnoc Gas’ total capital expenditure (capex) commitment of $20bn for the 2023-29 period to up to $28bn, Peter Van Driel, the company’s chief financial officer, told journalists on a call.

The second and third phases involve building a natural gas liquids (NGL) fractionation train at its Ruwais gas processing facility, and a new gas processing train at its Habshan complex, respectively, Van Driel said in response to a question from MEED.

Separately, in a statement declaring its financial results for 2025, Adnoc Gas said: “This expansion [RGD], benefiting from the growth of Adnoc’s upstream operations, is one of the critical projects to enable Adnoc Gas by 2029 to expand its overall capacity by 30%. As global demand for gas continues to grow, Adnoc Gas is investing with confidence to support the UAE’s energy security whilst growing its international markets.”

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 of the RGD last June – 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).

The RGD 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 petrochemicals industry, Adnoc Gas said at the time.

The first tranche, valued at $2.8bn, was 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 – were 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.

The firm 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.

Financial results 2025

For the full-year 2025, Adnoc Gas announced a net income of $5.2bn, a 3% increase compared to 2024.

Adnoc Gas’ increased profit in 2025 was “primarily driven by the strength of its domestic gas business”, where its earnings before interest, taxes, depreciation and amortisation (ebitda) was up 10% on sales volume growth of 4% year-on-year and improved commercial terms.

“The company’s results underscored the strength of its long-term strategy, delivering record full-year results despite an average Brent crude oil price of $69, a drop of 14% year-on-year,” it added in its statement.

For Q4 2025, Adnoc Gas registered a net income of $1.2bn despite softer export market pricing.

Adnoc Gas increased sales volumes by 5% compared to Q4 2024, “primarily driven by strong domestic gas performance, with demand remaining steady throughout the UAE’s milder weather conditions in the final quarter of 2025”.

Overall, domestic adjusted Ebitda for Q4 2025 rose 6% year-on-year. “This sustained demand is attributable to the robust industrial sector, which contributed to a 4.8% UAE GDP growth rate in 2025,” Adnoc Gas added.

The company’s capex rose to $3.6bn in 2025, up 98% year-on-year, as several major projects progressed.

For the financial year 2025, Adnoc Gas confirmed its dividend of $3.584bn, of which an interim cash dividend of $1.792bn was paid in September, a quarterly dividend of $896m paid in December, and a final dividend of $896m expected to be paid in April 2026, pending approval at the company’s annual general meeting (AGM).

The 2025 dividend is in line with the company’s “robust policy to increase the annual dividend by 5% annually and reflects the company’s strong free cash flow, which exceeds the dividend commitment by over $500m”.

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Indrajit Sen

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