Adnoc issues tender for Bab Gas Cap main plant

29 June 2026

 

Register for MEED’s 14-day trial access 

Adnoc Gas, the gas processing subsidiary of Abu Dhabi National Oil Company (Adnoc Group), has issued the main tender for a major project to develop infrastructure to process incremental gas output arising from the unlocking of gas caps at the Bab onshore hydrocarbons development in Abu Dhabi.

As part of its upstream production growth targets for 2030, Adnoc Group is working to extract gas from four underdeveloped gas cap reservoirs at the Bab onshore field – Thammama A, Thammama B, Thammama F and Thammama H. The Thammama A, B and H reservoirs are estimated to collectively produce 1.45 billion cubic feet a day (cf/d) of gas, while output from the Thammama F gas cap is expected to reach 396 million cf/d.

Existing trains at the Habshan processing complex in Abu Dhabi will be unable to handle the new gas volumes. Adnoc Gas is therefore required to build new facilities to process up to 1.85 billion cf/d of additional raw gas when its parent company starts production from the Bab gas caps.

Adnoc Gas plans to build a gas processing plant in the Bab area, about 170 kilometres from Abu Dhabi, along with associated pipeline networks and ancillary units, as part of the broader Bab gas cap development project. It has divided the engineering, procurement and construction (EPC) scope into four packages:

  • EPC package 1 – Main Bab gas cap plant
  • EPC package 2 – Early civil works
  • EPC package 3 – Pipelines
  • EPC package 4 – Non-process area works

Adnoc Gas issued the tender for the main Bab gas cap plant on 25 June and has set a deadline of 17 July for contractors to submit technical bids, sources told MEED.

Abu Dhabi Securities Exchange-listed Adnoc Gas issued an expression of interest (EoI) to contractors for the main EPC tendering process for the Bab gas cap plant on 10 February. The company set an initial EoI submission deadline of 17 February, which it later extended to 20 February. Contractors submitted responses by that date, MEED previously reported.

Following completion of the prequalification phase, contractors that expressed interest formed the following teams to compete in the main contract tendering round, according to sources:

  • Larsen & Toubro Energy Hydrocarbon (India) + Samsung E&A (South Korea)
  • Saipem (Italy) + NMDC Energy (UAE)
  • Technip Energies (France) + JGC Corporation (Japan) + Sinopec (China)
  • Tecnimont (Italy) + China Petroleum Engineering and Construction Corporation (CPECC)

The other three packages remain in the main contract tendering stages, the sources said. Separately, Adnoc Group subsidiary Adnoc Onshore is preparing to issue the main tender for a project involving the tie-in of gas-producing and injection wells at the gas cap reservoirs of Abu Dhabi’s onshore Bab field, which forms part of the wider integrated Bab gas cap development programme.

Prior to issuing the EoIs for the Bab gas cap development project packages, Adnoc Gas completed an early engagement process with contractors in September and October last year, as MEED previously reported.

In December last year, Adnoc Gas awarded the front-end engineering and design (feed) works for the Bab gas cap development project – which will increase its gas processing capacity by about 20% – to Australia-based consultancy Worley. The feed contract covers more than 1.2 million man-hours, making it the largest engineering job awarded by Adnoc Gas to date.

Adnoc Gas currently has a capital expenditure (capex) commitment of $20bn for the 2023-29 period, which is on course to increase to about $28bn as the company strives to achieve final investment decisions (FIDs) on the second and third phases of its rich gas development programme (RGD) this year.

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 second and third phases involve building a natural gas liquids fractionation train at the Ruwais gas processing facility and a new gas processing train at the Habshan complex, respectively, Peter Van Driel, the company’s chief financial officer, had earlier told journalists on a call.

MEED reported in March that Adnoc Gas had selected the main EPC contractors for both the Ruwais NGL Train 5 and the Habshan 7 gas processing train projects, which are estimated to be valued at around $4bn each. Adnoc Gas is yet to officially award the EPC contracts for the two projects.

Adnoc Gas’ capex commitment could exceed $30bn when the company achieves FID on the Bab gas cap development project, which is currently expected later this year, Van Driel previously said.

Bab Gas Cap concession

In addition to Adnoc Gas issuing the main EPC tender for the gas processing plant, Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) has recently awarded concession agreements for the development and production of the Bab Gas Cap reserve in the emirate.

Adnoc will hold the majority 60% participating interest in the concession. The remaining stakes will be held by France’s TotalEnergies (10%), the UK’s BP (10%), China National Petroleum Corporation (CNPC) International (8%), Japan Oil Development Company (Jodco) Onshore (5%), China ZhenHua Oil (4%) and Korea GS E&P (3%).

According to SCFEA, the Bab Gas Cap development and production concession represents the largest gas cap development project of its kind globally, the Abu Dhabi Media Office said in a report.

A gas cap refers to the free natural gas that sits above an underlying oil reservoir — in this case, the giant Bab onshore oil field in Abu Dhabi.

The project, operated by Adnoc Onshore, is expected to have a production capacity of approximately 1.5 billion cf/d of natural gas, equivalent to about 15% of Adnoc Gas’ total operational gas processing capacity.

“This underscores the strategic significance of the project, which is expected to contribute to the UAE’s gas self-sufficiency, support the continued development of the country’s petrochemicals sector and advance Adnoc’s plans to expand its liquefied natural gas (LNG) export capacity,” the Abu Dhabi Media Office said in its report.

https://image.digitalinsightresearch.in/uploads/NewsArticle/17479524/main3824.jpg
Indrajit Sen
Related Articles
  • Masdar signs renewables deals in Montenegro

    28 July 2026

    Abu Dhabi Future Energy Company (Masdar) and Montenegro’s state power utility Elektroprivreda Crne Gore (EPCG) have signed agreements to advance renewable energy projects in Montenegro.

    The agreements cover the joint development of two solar projects with a combined capacity of 150MW.

    The companies have also signed a framework agreement to explore the development of more than 400MW of pumped hydro energy storage projects.

    The projects will be the first to be progressed through a 50:50 joint venture planned by Masdar and EPCG.

    The two companies signed a joint venture agreement in April as part of a wider 2GW renewable energy partnership in Montenegro.

    The latest agreements were signed in the presence of Sultan Al-Jaber, UAE minister of industry and advanced technology and chairman of Masdar, and Admir Sahmanovic, Montenegro’s minister of energy and mining.

    Masdar has an existing presence in Montenegro through its investment in the 72MW Krnovo wind farm.

    European expansion

    The developer has been accelerating foreign investment plans in 2026. As part of its European expansion plans, it signed an agreement with Spanish energy firm Repsol in June to acquire a 49.99% stake in a local renewable energy portfolio.

    The deal valued the portfolio at €849m ($982m).

    The portfolio comprises 705MW of operational capacity, including 13 wind farms with a combined capacity of 402MW and six solar photovoltaic solar parks with a total capacity of 303MW.

    All the assets entered operation in 2025 and the first quarter of 2026. The portfolio also includes a pipeline of future wind, solar and battery storage projects with a combined capacity of more than 565MW.

    Growth in Asia

    In April, Masdar signed a binding agreement with France’s TotalEnergies to establish a $2.2bn joint venture to develop, build and operate renewable energy projects across Asia.

    The combined business will have 3GW of operational capacity and 6GW of projects in advanced development, targeted for commissioning by 2030.

    In June, Masdar broke ground on a 1GW wind farm in Kazakhstan’s Zhambyl region, marking the company’s first renewable energy project in the country. 

    The $1.4bn development is one of the largest integrated wind and battery energy storage projects in Central Asia. It will combine a 1GW wind farm with a 600 MWh battery energy storage system.

    Masdar is targeting a global renewable energy portfolio of 100GW by 2030. It recently reached 65GW, two-thirds of the way to that target.

    The company plans to deploy an additional $30bn-$35bn in equity and project finance by 2030, adding an average of 10GW of new capacity each year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17792896/main.jpg
    Mark Dowdall
  • Geopolitics tests Dubai property with hotels hardest hit

    28 July 2026

    Dubai’s residential market cooled sharply in the second quarter of 2026, and the hospitality sector recorded its steepest downturn in years, according to US-based real estate research firm CBRE’s latest UAE market review. Office and industrial real estate, however, continued to defy a weaker macroeconomic backdrop, the report said.

    The figures, published on 28 July, mark a turning point for a residential sector that has driven much of Dubai’s post-pandemic growth story.

    Transaction volumes fell 29% year-on-year to just under 37,000 sales in the second quarter, down from more than 51,000 in the same period last year.

    Total transaction values dropped even further, to AED88bn ($24bn) from close to AED154bn ($42bn) in the second quarter of 2025.

    Rents have moved into negative territory faster than prices. While sales values were still up 1.9% year-on-year, average residential rents fell 2.6% annually and 6.2% quarter-on-quarter.

    About 18,000 new units were completed in the first half of the year, adding to supply just as demand and transaction activity were softening.

    The contrast with Abu Dhabi is stark. The capital’s residential values rose 21.6% year-on-year, powered by 24.4% growth in apartment prices, while rents climbed a further 3.6%.

    Sales values reached AED32bn ($8.7bn), up 150% on the same quarter last year, with transaction volumes up around 80%.

    Off-plan sales accounted for roughly 83% of deals and 85% of value, underscoring investor appetite for new launches even as Dubai’s own off-plan pipeline slows.

    Hospitality bears the brunt

    The hospitality sector recorded the most pronounced downturn of any asset class tracked in the review. Regional geopolitical disruption weighed heavily on international travel demand and airline operations through the first half of the year, with UAE-wide hotel occupancy down 27.7 percentage points year-on-year to June and revenue per available room (RevPAR) down 31.8%, according to CoStar data cited in the report.

    Dubai absorbed the sharpest declines, reflecting its greater reliance on international visitor flows, while Abu Dhabi held up comparatively better on the strength of domestic demand and events-led tourism.

    Operators have responded with staycation packages, domestic tourism campaigns and refurbishment programmes aimed at protecting market positioning ahead of an anticipated recovery in international arrivals.

    Office and industrial hold strong

    Away from housing and hotels, the picture is markedly different. Dubai office rents rose 13% year-on-year, with prime rents up 16% and occupancy at about 94%, as demand concentrated in DIFC, Tecom and DMCC continues to outpace the delivery of new Grade A stock.

    Abu Dhabi’s office market performed even more strongly, with rents up nearly 16% and occupancy at 96%, driven by ADGM-based financial services firms including hedge funds.

    With less than 300,000 square metres (sq m) of new office space due between 2026 and 2027, both emirates face a supply squeeze that is likely to sustain rental growth into next year.

    Retail occupancy remained resilient at about 98% in Dubai and 95% in Abu Dhabi despite softer tourism flows and shifting consumer spending, with Dubai rents up around 3% year-on-year.

    A new wave of retail supply is in the pipeline, led by Al-Khail Avenue in Dubai and the first phase of Saadiyat Grove in Abu Dhabi.

    Industrial and logistics stand out

    Underpinned by government-led localisation programmes, the UAE industrial exports reached AED262bn ($71bn) in 2025, with Operation300bn and Make it in the Emirates (MIITE) continuing to draw manufacturing and logistics investment.

    Abu Dhabi secured AED48.5bn ($13.2bn) in commitments through MIITE alongside new logistics agreements at Kezad. At the same time, Dubai recorded strong rental growth across Dubai Industrial City, Dubai Investments Park and National Industries Park.

    CBRE now forecasts a marginal UAE GDP contraction of 0.04% for 2026, reflecting disruption to trade, tourism and aviation, though it expects a strong rebound in 2027 as regional conditions normalise.


    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17792437/main.jpg
    Yasir Iqbal
  • Kuwait extends deadlines for power infrastructure packages

    28 July 2026

    Kuwait’s Public Authority for Housing Welfare (PAHW) has extended the bid submission deadline for two tenders covering power transmission works at the South Saad Al-Abdullah residential development.

    The first tender covers the supply, installation and maintenance of 10 main 132/11kV transformer substations for the third phase of the development. 

    The bid deadline has been extended to 19 August. The original deadline was 5 August.

    The second tender covers the supply, installation and maintenance of 10 main 132/11kV transformer substations for the fourth phase of the project. 

    The bid deadline for this project has also been moved to 19 August.

    Both projects were initially tendered in May. As reported by MEED, PAHW previously issued addendums for both substation tenders, revising the qualification requirements for bidders.

    According to the revised requirements, contractors must be approved by Kuwait’s Ministry of Electricity, Water & Renewable Energy and have experience supplying and installing at least 10 132kV substations in Kuwait.

    The addendums also introduced requirements related to transformer and gas-insulated switchgear manufacturing approvals, as well as operational performance records for installed equipment

    Sabah Al-Ahmad residential city

    Meanwhile, bids were submitted on 16 July for two 132kV underground cable tenders for the South Sabah Al-Ahmad residential development.

    PAHW had tendered the contracts in May.

    The first cable tender covers the supply, extension and maintenance of 132kV underground cables feeding eight main transformer substations serving the N1, N6 and N11 districts in the project’s fourth phase. 

    According to sources, Egytech Cables, a subsidiary of Egypt’s Elsewedy Electric, was the lowest bidder with an offer of $42.37m.

    The other bidders include:

    • TBEA Shandong Luneng Taishan Cable (China, $44.06m)
    • Riyadh Cables (Saudi Arabia, $44.57m)
    • The Contractor General Trading & Contracting (Kuwait, $46.26)

    The second cable tender covers the supply, extension and maintenance of 132kV underground cables linked to substations serving the N5, N6, N8 and N10 districts in the project’s third phase. 

    Egytech Cables submitted the lowest offer of $39.95m. TBEA Shandong Luneng Taishan Cable submitted a bid of $41.89m along with Riyadh Cables ($42.05m) and The Contractor General Trading & Contracting ($44.97m).

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17786669/main.jpg
    Mark Dowdall
  • Ashghal tenders northern Smaisma infrastructure consultancy

    28 July 2026

     

    Qatar’s Public Works Authority (Ashghal) has issued a tender for consultancy services related to infrastructure development in the northern Smaisma area.

    The tender was issued on 19 July, with a bid submission deadline of 8 September.

    The scope covers construction supervision consultancy services for package seven (A and B).

    According to local media reports, the scope of package seven A includes the airstrip road, the coastal road and connections to the existing Al-Khor Expressway, spanning an area of about 18.5 kilometres.

    Ashghal floated the main contract tender for this package in March, as MEED reported.

    The contract duration is four years from the start of construction.

    Package seven B includes foul sewer infrastructure, drainage networks and road development works spanning more than 1.3km.

    The latest tender follows Ashghal’s announcement of contract awards for 12 new projects, with a total value exceeding QR4.5bn ($1.2bn).

    According to a notice published on its website, these include six building projects, most notably the redevelopment of Hamad General Hospital, with a contract value of about QR1.1bn ($301m).

    Other projects awarded include the construction of a post office building in Al-Thumama; renovation works at the Qatar Racing & Equestrian Club and the Qatar Equestrian Federation; and the implementation of Phase 4 of the Al-Uqda Equestrian Complex development.

    In the roads and infrastructure sector, four projects have been awarded, led by packages one and two of the road and infrastructure development works in Izghawa and Al-Thumaid.

    The awards also include a landscaping project and an air-conditioned walkway at Qatar University, as part of broader public-facilities improvement initiatives.

    UK analytics firm GlobalData forecasts that Qatar’s construction industry will expand by 4.3% in 2026, supported by investments in renewable energy and transportation infrastructure.

    Meanwhile, the Planning & Statistics Authority reports that Qatar’s construction value-added grew by 6.6% year on year in the first half of 2025.

    GlobalData also expects the industry to grow at an average annual rate of 4.6% in 2027-29, supported by investment in construction, energy and infrastructure projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17791590/main.gif
    Yasir Iqbal
  • Contractor wins Emaar Oasis The Address villas deal

    28 July 2026

     

    Dubai-based Dutco Construction has won a contract to build the third phase of Emaar’s Address Villas Tierra at The Oasis development.

    The contract was awarded by Dubai-based real estate developer Emaar Properties.

    The scope comprises the construction of 199 Address-branded four-, five- and six-bedroom villas.

    Local firm Mirage is the project consultant. Barajeel Engineering Consultants is the architect of record.

    Site preparatory works are under way, and the project is slated for completion in 2028.

    Dutco is already active at The Oasis. In April last year, Emaar Properties appointed Dutco Construction for the main works on the Mirage package of The Oasis development.

    The Mirage package involves the construction of about 202 residential villas and is expected to be completed by the end of 2027.

    Local firm X Architects is the project consultant, and Kristina Zanic is the sub-consultant.

    Emaar announced The Oasis project in June 2023. The estimated $20bn development will comprise 7,000 residential units, including mansions and villas.

    The overall development will cover more than 9.4 million square metres. The developer has said that more than 25% of the land will be dedicated to lakes, canals, parks, jogging tracks, green spaces and other amenities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17791774/main.png
    Yasir Iqbal