Abu Dhabi National Oil Company Gas (ADNOC Gas) has announced a final investment decision (FID) and awarded $5bn (Dh18.36bn) in contracts for the first phase of its Rich Gas Development (RGD) project.
The scope of RGD phase one includes the expansion and optimisation of gas processing operations at four key facilities: Asab, Buhasa, Habshan (onshore) and the Das Island liquefaction facility (offshore).
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These upgrades are aimed at increasing gas throughput and enhancing operational efficiency.
Engineering, procurement and construction management contracts have been awarded in three separate tranches for RGD phase one.
A $2.8bn contract has been awarded to Wood for work at the Habshan facility.
Two additional contracts, valued at $1.2bn and $1.1bn respectively, have been awarded to consortia led by Petrofac and Kent for work at the Das Island facility and the Asab and Buhasa sites.
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By GlobalDataADNOC 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 [earnings before interest, taxes, depreciation and amortisation] 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 [United Arab Emirates].”
RGD phase one will also involve debottlenecking current facilities and tapping into new gas streams.
ADNOC Gas has indicated that two further FIDs are expected for subsequent phases of the RGD project, which will focus on expanding capacity at the Habshan and Ruwais sites.
The broader RGD initiative aims to support new gas reservoirs development, domestic gas self-sufficiency, increase gas exports and provide feedstock to the UAE’s petrochemical sector.
In parallel, the project is expected to contribute to local employment, with new technical positions created through 2029.
Last month, ADNOC signed several agreements with US energy companies, which could facilitate investments totalling $60bn from the US in energy projects within the UAE.
