The Abu Dhabi National Oil Company (ADNOC) has confirmed a Dh22.6bn ($6.2bn) final investment decision (FID) to develop the Umm Shaif Gas Cap in Abu Dhabi, United Arab Emirates (UAE).
The project will be carried out with the involvement of international partners TotalEnergies, Eni, and China National Petroleum Corporation (CNPC).
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This development is part of ADNOC’s broader strategy to increase the availability of natural gas amid growing global demand.
The Umm Shaif development is expected to provide more than 600 million standard cubic feet per day of natural gas and associated gas liquids.
According to ADNOC, this volume represents nearly 10% of the UAE’s current daily gas use. Output from the project is scheduled to begin by 2030.
Three engineering, procurement and construction contracts worth Dh18.8bn have already been awarded for building offshore infrastructure. Major UAE and international contractors were among the awarded consortiums.
Additionally, the investment package covers a Dh1.3bn drilling programme for 14 wells, set to be carried out by ADNOC Drilling over an 18-month period using three rigs.
The UAE is recognised as having the world’s seventh largest gas reserves. The company said it is working to unlock more gas resources to meet both domestic and international energy needs and to support the expansion of its liquefied natural gas (LNG) business.
UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO Sultan Ahmed Al Jaber said: “ADNOC is accelerating its integrated gas strategy to further harness the UAE’s vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise.
“The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC’s position as a reliable gas supplier. Together with our international partners, we are building on decades of responsible stewardship of Abu Dhabi’s longest-operating offshore field to unlock lasting value for the UAE and our customers.”
The FID follows the Supreme Council for Financial and Economic Affairs’ approval of the Bab Gas Cap concession, which is intended to unlock an additional 1.5 billion standard cubic feet per day of natural gas and related products.
ADNOC recently launched a global LNG marketing and trading platform at Abu Dhabi Global Market, with a targeted capacity of 47 million tonnes per annum (mtpa) by 2035.
Earlier this month, the company finalised a 15-year sales and purchase agreement to supply 1mtpa of LNG to Inpex from the Ruwais LNG project.
