Adnoc Gas to increase capacity by 20% in five years
12 August 2024
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Adnoc Gas has announced it is making progress on core growth projects that are expected to increase the company’s natural gas processing capacity by 20% within the next five years.
The subsidiary of Abu Dhabi National Oil Company (Adnoc Group) has made significant investments in those growth projects, the largest of which is the liquefied natural gas (LNG) export terminal facility in Ruwais, Abu Dhabi.
Peter van Driel, chief financial officer at Adnoc Gas, provided updates on some of these projects during a press conference held to discuss the company’s financial results for the second quarter of 2024.
Adnoc Gas announced an adjusted net income of $1.19bn in the first quarter of 2024, a year-on-year growth of 21%. Revenues for the second quarter were registered at $6.076bn, a year-on-year increase of 13%, the company said on 12 August.
Ruwais LNG facility
Adnoc Gas expects to commission the upcoming Ruwais LNG export terminal in 2028. The company awarded the full engineering, procurement and construction (EPC) contract and achieved the final investment decision (FID) for the project in June.
A consortium of France’s Technip Energies, Japan-based JGC Corporation and Abu Dhabi-owned NMDC Energy was awarded the EPC contract, worth $5.5bn, Adnoc announced on 12 June.
The LNG export terminal in Ruwais will have the capacity to produce about 9.6 million tonnes a year (t/y) of LNG from two processing trains, each with a capacity of 4.8 million t/y. When the project is commissioned, Adnoc’s LNG production capacity will more than double to about 15 million t/y.
Estidama advances
Adnoc Gas said it expects EPC works on its project to expand its sales gas pipeline network across the UAE, also known as Estidama, to complete in the third quarter of 2025.
Through the Estidama scheme, Adnoc Gas aims to extend the existing 3,200-kilometre pipeline network to over 3,500km, enabling the transportation of higher volumes of natural gas to customers across the UAE. EPC works on the estimated $2bn-plus Estidama project have been divided into seven packages.
Adnoc Gas, in July, awarded contracts worth a total of $550m for two EPC packages of the Estidama project.
The combined packages 4+7 of the Estidama project were awarded to the UAE unit of Oman's Galfar Engineering & Contracting, valued at $295m. Abu Dhabi’s NMDC Energy won package 6, which is worth $255m.
Habshan CO2 recovery project
Adnoc Gas awarded UK-headquartered Petrofac the main EPC contract, valued at $615m, for the Habshan carbon dioxide (CO2) recovery project in October last year. The planned Habshan carbon capture, utilisation and storage (CCUS) facility will have the capacity to capture and permanently store 1.5 million t/y of CO2 within geological formations deep underground.
In its presentation to journalists on 12 August, Adnoc Gas said it expects the Habshan CO2 recovery project to be commissioned in the first quarter of 2026.
Project Meram
Adnoc Gas anticipates EPC work on its Maximise Ethane Recovery & Monetisation (Meram) project to finish in the last quarter of 2025.
The company awarded a $3.6bn contract for Project Meram to a consortium of Abu Dhabi’s NMDC Energy and Spanish contractor Tecnicas Reunidas in August 2023. The consortium began execution of EPC work on the project in the same month, as MEED previously reported.
The strategic Meram project aims to achieve dual objectives, Adnoc stated. The first goal is to increase ethane extraction by 35%-40% from Adnoc Gas’ existing onshore facilities in the Habshan gas processing complex by constructing new gas processing facilities. The second goal is to unlock further value from existing feedstock and deliver it to Ruwais via a 120km natural gas liquids (NGL) pipeline.
Other growth projects
Regarding its other core growth projects, Adnoc Gas said it intends to complete its P5 projects in 2027. Adnoc Gas’ P5 projects are aligned with supporting its parent company's target of achieving an oil production potential of 5 million barrels a day (b/d) by 2027.
“P5 is a set of activities to accommodate the 5 million b/d [Adnoc Group target],” Van Driel told journalists.
Separately, Adnoc Gas said it now expects EPC work on the second phase of its integrated gas development expansion project (IGD-E2) to complete in the first quarter of 2025.
A consortium of Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company is executing EPC works on the IGD-E2 project, which is estimated to be worth about $1.4bn. The project will allow Adnoc Gas’ Habshan plant to process an additional 200 to 400 million cubic feet a day (cf/d) of offshore gas. Its output currently stands at 1.4 billion cf/d.
The Bab Gas Cap development project, which has seen delays since being initiated a few years ago, is expected to complete in 2028, Adnoc Gas said.
Lastly, Adnoc Gas also expects its LNG2.0 project, through which it plans to increase ethane output and reduce greenhouse gas emissions from its LNG production complex on Das Island, to complete in 2028.
Italian contractor Saipem and France-based Technip Energies are participating in a feed-to-EPC contest for the project, MEED previously reported. Adnoc Gas will select the contractor that submits the most competitive front-end engineering and design (feed) proposal for executing EPC works. This constitutes the basic method of a feed-to-EPC competition.
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Adnoc funnels billions into boosting gas processing15 October 2026

Abu Dhabi National Oil Company (Adnoc Group) is accelerating investment in gas processing and associated downstream infrastructure as demand in the UAE rises and the government prioritises lower-carbon energy growth.
Rising gas consumption in the UAE is being driven by rapid population growth, greater household electrification, expanding industrial bases and demand from gas-intensive downstream segments such as petrochemicals, fertilisers and metals.
Power generation and water desalination are also key sources of demand, while new industrial zones – as well as data centres supporting the expansion of artificial intelligence (AI) use in the country – add further baseload requirements.
Adnoc Gas, Adnoc Group’s gas processing subsidiary, is leading the UAE’s push to expand gas processing capacity and is executing a major capital expenditure (capex) programme worth $28bn over 2026-30.
As part of that capex plan, Adnoc Gas achieved final investment decision (FID) on the second and third phases of its Rich Gas Development (RGD) programme earlier this year.
Adnoc Gas awarded $8.2bn of engineering, procurement and construction (EPC) contracts for the second and third phases of the RGD programme. These relate to the construction of a new gas processing train at the Habshan complex and a natural gas liquids fractionation train at the Ruwais gas processing facility, respectively.
Adnoc Gas officially announced the awards, saying it selected China-based Wison Engineering for RGD phase 2 under a $3.9bn contract, while Italy’s Tecnimont was awarded the $4.3bn phase 3 contract.
Adnoc Gas has also reiterated its $5bn capex for the first phase of the RGD scheme, which is under construction. The company awarded $5bn of engineering, procurement and construction management contracts in three tranches for phase 1 of the RGD programme in June last year, marking the company’s largest-ever capital investment.
Across all three phases, Adnoc Gas has committed a total of $13.2bn to the RGD programme.
Bab Gas Cap development
Looking ahead, Adnoc Gas is advancing towards FID on the estimated $8bn Bab gas cap development. The project will process up to 1.85 billion cubic feet a day (cf/d) of raw feed gas once Adnoc Group begins extracting reserves from four underdeveloped onshore reservoirs at the Bab field: Thammama A, B and H (projected to yield a combined 1.45 billion cf/d) and Thammama F (projected at 396 million cf/d).
Because existing trains at the Habshan complex cannot accommodate these supplementary volumes, the project entails building a processing plant approximately 170 kilometres from Abu Dhabi city, alongside pipeline networks and ancillary units.
Adnoc Gas has split the EPC scope into four packages, with technical bids due on 16 November:
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Gas pipeline investments
Adnoc Group continues to invest in projects to enhance its gas transmission networks across the UAE, following its $3.5bn-plus capex on the Estidama programme earlier this decade to expand its sales-gas network in the country.
Adnoc Gas recently awarded the main contract for a project to build a new pipeline that will supply gas from the Habshan scraper launcher station at its Habshan gas compression complex in Abu Dhabi to the Al-Nouf customer receiving station, for delivery to Emirates Water & Electricity Company (Ewec).
The proposed 56-inch, 127km pipeline will help the UAE’s state utility, Ewec, meet additional gas demand to power the second phase of an AI data centre in Abu Dhabi, as well as support the relocation of some of its key assets in the Mirfa area of the emirate.
Adnoc Gas awarded the EPC contract for the project to India-based Kalpataru Projects International.
Separately, Adnoc is moving ahead with plans to build an oil pipeline network that will transport crude from its main offshore oil processing islands in the Gulf to its onshore crude export terminal at Jebel Dhanna, Abu Dhabi.
The planned network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport it about 300km inland to the Jebel Dhanna terminal.
The proposed pipelines will eventually connect to the West-East crude pipeline network currently being built from Jebel Dhanna to the emirate of Fujairah, which is expected to be commissioned in 2027.
Boosting chemicals output
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Contractors given extension on Riyadh airport aviation complex15 October 2026

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Project scale
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KBR wins Aramco offshore engineering services contract15 October 2026
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Saudi Aramco has awarded US-headquartered KBR a contract to provide engineering services to support facility upgrades across the Marjan offshore field in Gulf waters.
Under the contract, awarded under Aramco’s existing general engineering services-plus (GES+) agreement with KBR, the US firm will provide engineering and project execution services to support key offshore processing, gas compression and power infrastructure facilities within the Marjan field.
The project is expected to help maintain the Marjan field’s production capacity in line with recent field developments, KBR said in a statement.
It is also expected to advance associated gas processing capabilities and strengthen the long-term performance of critical offshore assets through the integration of digital technologies, automation and power system enhancements, the Houston-based company added.
KBR’s engineering services will specifically target upgrades to gas-oil separation plants (GOSPs) 2 and 3 at the Marjan offshore oil field development, a source told MEED.
KBR is expected to execute the engineering work primarily from its offices in Houston and Al-Khobar.
The Marjan offshore oil field, on Saudi Arabia’s eastern coast, was discovered in 1967 and began production in 1973.
In 2019, Aramco committed an estimated $15bn in capital expenditure for a major infrastructure upgrade at the field under the Marjan increment programme. The project aims to increase the field’s oil production capacity by 300,000 barrels a day (b/d) of Arabian Medium crude oil to 800,000 b/d, process 2.5 billion cubic feet a day of gas, and produce an additional 360,000 b/d of ethane and natural gas liquids.
The Marjan increment programme consists of about 20 engineering, procurement and construction (EPC) packages. The scope of work mainly involves a new GOSP and 24 offshore oil, gas and water-injection platforms.
Since launching the Marjan increment programme, the Saudi energy giant has continued investing billions to maintain and upgrade infrastructure at the Marjan field.
Aramco also plans to maintain steady capex in the future to sustain oil and gas production at the Marjan field development over the long term.
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MEED’s October 2026 report on Saudi Arabia includes:
> COMMENT: Saudi projects hold steady
> GOVERNMENT: Riyadh looks to reset its regional defence outlook
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
> DOWNSTREAM: Sabic steps up Saudi petchems investment
> POWER: Saudi Arabia’s power award activity slows
> WATER: Saudi water sector hits sharp slowdown
> CONSTRUCTION: Saudi construction defies the headwinds
> TRANSPORT: Saudi infrastructure pushes forward amid conflict
> DATABANK: Saudi data indicates project spending shiftTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20621733/main.jpg