meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc Gas to increase capacity by 20% in five years

12 August 2024

Register for MEED's 14-day trial access 

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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12325521/main.png
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Read the March 2026 MEED Business Review

    3 March 2026

    Download / Subscribe / 14-day trial access

    Saudi Arabia’s priorities have shifted over the past decade, with officials at February’s Private Sector Forum confirming a reprioritisation since 2016 that includes postponing the 2029 Asian Winter Games in Trojena and scaling back projects such as The Line in response to global economic uncertainty.

    In 2026, the Public Investment Fund’s role as the main driver of development is shifting towards greater private sector involvement, a transition examined by MEED editor Colin Foreman in the latest issue of MEED Business Review.

    March’s market focus is on Egypt, where the country’s crisis mode is giving way to a cautious revival. 

    This edition also reports that the region’s downstream sector may face subdued project spending in 2026 due to flattening demand and weak margins.

    In the latest issue, we disprove the Ramadan slowdown story, present exclusive leadership insight from Jacobs on delivering Saudi Arabia’s next phase of rail growth and outline some important lessons learnt from a power plant decommissioning. We also talk to senior executives at Enersol, Lamar Holding and Metito. 

    We hope our valued subscribers enjoy the March 2026 issue of MEED Business Review. 

     

    Must-read sections in the March 2026 issue of MEED Business Review include:

    > AGENDA: Saudi Arabia’s private sector picks up the baton

    > RAMADAN: Data disproves the Ramadan slowdown story

    INDUSTRY REPORT:
    Downstream
    > Chemicals producers look to cut spending
    > Global petrochemical project capex set to rise until 2030

    > LEADERSHIP: Delivering Saudi Arabia’s next phase of rail growth

    > POWER: Lessons learnt from a power plant decommissioning

    > INTERVIEW: Abu Dhabi’s Enersol charts acquisitions path

    > INTERVIEW: Lina Noureddin, CEO of Lamar Holding, on the evolving PPP landscape

    > INTERVIEW: Contract award marks Metito’s return to municipal projects

    > MARKET FOCUS EGYPT: 
    > COMMENT: Egypt’s crisis mode gives way to cautious revival
    > GOVERNMENT: Egypt adapts its foreign policy approach
    > ECONOMY & BANKING: Egypt nears return to economic stability
    > OIL & GAS: Egypt’s oil and gas sector shows bright spots
    > POWER & WATER: Egypt utility contracts hit $5bn decade peak
    > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

    > MEED COMMENTS: 
    >     Winter Games delay raises uncertainty for Saudi construction
    > Duqm petrochemicals revival provides fillip to Gulf projects market
    > Solar deals signal Saudi Arabia’s energy ambitions
    > Hydrogen bridge awaits bankable contracts

    > GULF PROJECTS INDEX: Gulf index leaps upward in 2026

    > JANUARY 2025 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The war that (almost) no one wants

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15839736/main.gif
    MEED Editorial
  • Firms prepare Port of Duqm consultancy bids

    3 March 2026

    Oman’s Port of Duqm has issued tender notices inviting consultants to bid for two packages by mid-March.

    The scope of the first tender covers the consultancy services for inspection, scope preparation and supervision of the sewage treatment plant.

    The bid submission deadline is 18 March.

    The scope of the other tender includes the consultancy services for port marine traffic assessment/simulation and impact study.

    The bid submission deadline for this package is on 17 March.

    Both tenders were floated late last month.

    The Port of Duqm is a deepwater, multipurpose port on Oman’s Arabian Sea coast, developed within the Special Economic Zone at Duqm (Sezad).

    Its location outside the Strait of Hormuz is a key advantage, positioning Duqm as a strategic alternative gateway for cargo moving between the Gulf, the Indian subcontinent and East Africa, and supporting Oman’s push to grow non-oil trade and port-led industry.

    Designed to handle a mix of cargoes, including containers, dry bulk, breakbulk and liquid bulk, the port forms part of a wider Duqm complex that also includes a major dry dock and large industrial land allocations for energy, manufacturing and logistics projects.

    As the port and SEZ expand in phases, consultancy tenders typically reflect the next steps in delivery and operations, covering engineering and technical studies, commercial assessments, and readiness planning tied to new terminals and industrial tie-ins.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15840397/main.jpg
    Yasir Iqbal
  • Diriyah awards Pendry superblock package

    3 March 2026

     

    Saudi Arabian gigaproject developer Diriyah Company has awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock package in the second phase of the Diriyah Gate development (DG2).

    The contract was awarded to the local firm Saudi Constructioneers.

    The Pendry superblock encompasses the construction of a hotel, known as the Pendry Hotel, along with residential and commercial assets.

    The project will cover an area of 75,365 square metres (sq m) and is located in the northwestern district of the DG2 area.

    Contractors had submitted final proposals for a contract in September last year, as MEED reported.

    The tender was issued in June last year.

    The latest contract follows the Diriyah Company’s award of a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan.

    The contract was awarded to the joint venture of local firm BEC Arabia and Indian contractor Ashoka Buildcon.

    The project has a gross floor area of over 31,000 sq m.

    The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15778187/main.jpg
    Yasir Iqbal
  • Local firm to develop $598m Muscat tourism project

    3 March 2026

    Oman’s Ministry of Heritage & Tourism has signed an agreement with local firm Sorouh Al-Qurm Real Estate Company to build an integrated tourism complex in the Al-Qurm area of Muscat.

    The project will be developed with a total investment estimated at RO230m ($598m).

    Planned across more than 165,000 square metres (sq m), the development will include two four-star hotels offering over 400 rooms, alongside leisure components such as an indoor games hall and trampoline attractions.

    The site will also incorporate commercial spaces and freehold residential units, among other amenities.

    The agreement was signed by Sayyid Ibrahim Bin Said Al-Busaidi, minister of heritage and tourism, and Khaled Khudair Mashaan, chairman of Al-Argan International Real Estate Company, who signed as the authorised representative for Sorouh Al-Qurm Real Estate Company.

    GlobalData forecasts that the Omani construction industry will expand at an average annual growth rate of 4.2% from 2025 to 2028.

    Growth in the country will be supported by rising government investments in renewable energy and transport infrastructure, as well as in the housing sector, as part of the Oman Vision 2040 plan.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15839476/main.jpg
    Yasir Iqbal
  • Firms to build Jeddah Islamic port logistics zone

    3 March 2026

    The Saudi Ports Authority (Mawani) has signed an agreement with Dammam-headquartered Sultan Logistics to develop a new logistics zone at Jeddah Islamic Port’s Al-Khumra site.

    According to a statement posted by Mawani on X, the project will cover about 200,000 square metres and represents an investment of SR250m ($66m).

    Planned facilities include warehouses, designated areas for storing and servicing dry and refrigerated containers, and a re-export section.

    Mawani said the development is intended to strengthen the port’s position on the Red Sea by upgrading service quality, supporting private sector participation and contributing to Saudi Arabia’s broader economic diversification goals.

    Jeddah Islamic Port currently operates 62 multipurpose berths and can handle up to 130 million tonnes a year.

    The latest agreement follows Mawani’s April 2025 signing of more than SR500m ($133m) in agreements with local firms to develop two logistics parks at King Abdulaziz Port in Dammam, as reported by MEED.

    In a statement, Mawani said that in 2024, it launched and inaugurated eight logistics parks with an estimated investment of about SR3bn ($800m).

    The firm said: “These investments are part of the broader development of over 20 logistics centres under Mawani’s supervision across Saudi ports, with total investments over SR10bn ($2.6bn).”

    GlobalData expects the Saudi construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

    The infrastructure construction sector is expected to grow at an average rate of 6% in 2025-28, supported by government investments in rail, dams and road infrastructure projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15838212/main.gif
    Yasir Iqbal