ADNOC Gas has made a final investment decision (FID) on the initial phase of its Rich Gas Development (RGD) Project in the UAE and followed it up by awarding $5bn worth contracts.
The contracts focus on expanding core processing units to enhance throughput and operational efficiency at four ADNOC Gas facilities: Asab, Buhasa, Habshan (onshore), and the Das Island liquefaction plant (offshore).
The company plans to make FIDs on two additional phases of the RGD project at Habshan and Ruwais, aiming to increase production capacity to meet rising market demands.
ADNOC Gas CEO Fatema Al Nuaimi said: “The FID and contract awards for the first phase of the Rich Gas Development project mark a significant milestone in ADNOC Gas’ strategy to deliver +40% EBITDA growth between 2023 and 2029.
“This strategic investment is expected to deliver significant new value for our shareholders and enable continued sustainable growth for the company, our employees, and the UAE.”
The RGD project is set to develop new gas reservoirs, crucial for boosting liquid gas exports, supporting UAE’s gas self-sufficiency, and supplying essential feedstock to the country’s expanding petrochemical sector.
Phase 1 involves engineering, procurement, and construction management (EPCM) contracts awarded in three tranches. The first tranche, valued at $2.8bn, has been awarded to Wood for the Habshan facility.
Petrofac and Kent have been granted the remaining tranches—$1.2bn for the Das Island liquefaction facility and $1.1bn for the Asab and Buhasa facilities.
Wood’s responsibilities include significant upgrades and debottlenecking solutions at the existing Habshan gas processing complexes and pipelines, incorporating brownfield modifications and new facility installations.
The contract value includes pass-through revenue, with Wood expected to recognise approximately $400m from EPCM services.
Petrofac will manage EPCM services and oversee procurement and construction contracts to create a new inlet facility.
The company will also build two gas dehydration and compression trains, each with a capacity of 420 million standard cubic feet per day (MMSCFD), along with associated infrastructure.
Petrofac will also upgrade existing facilities to enhance capacity for collecting and transporting raw natural gas.
Phase 1 of the RGD project emphasises optimising and debottlenecking current gas assets while unlocking new gas streams. This aligns with ADNOC Gas’ long-term strategy focused on growth between 2025 and 2029.
