ADNOC gives the green light to the $6.2 billion Umm Shaif gas development project.

Date:

The Umm Shaif development will deliver over 600 million scfd of gas capacity, with production scheduled to commence in 2030.

Abu Dhabi: ADNOC has sanctioned a $6.2 billion development plan for the Umm Shaif Gas Cap, which is expected to deliver gas volumes equivalent to almost one-tenth of the UAE’s present daily demand.

The final investment decision covers the gas cap development at Abu Dhabi’s longest-operating offshore field, with participation from ADNOC’s global partners TotalEnergies, Eni and China National Petroleum Corporation.

The project is expected to begin production in 2030, adding over 600 million standard cubic feet per day of natural gas and associated liquids to the UAE’s energy mix. ADNOC said the increased supply will bolster domestic energy security and support industrial demand, including infrastructure linked to artificial intelligence expansion.

Expanding the UAE’s gas supply

The UAE ranks among the world’s largest holders of natural gas reserves, with the country’s seventh-largest reserves providing ADNOC with a strong resource foundation to expand production and grow its liquefied natural gas (LNG) business.

Gas produced from Umm Shaif will support ADNOC’s domestic and international customers while increasing supplies to meet growing industrial and power sector demand.

“ADNOC is accelerating its integrated gas strategy to further harness the UAE’s abundant gas resources and expand our global LNG platform as worldwide demand for natural gas continues to grow,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO. “The Umm Shaif Gas Cap FID represents another key milestone in executing this strategy, strengthening ADNOC’s role as a dependable global 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 long-term value for the UAE and our customers.”

The Umm Shaif investment decision follows the award of the Bab Gas Cap concession agreement by the Supreme Council for Financial and Economic Affairs.

The Bab development is expected to add a further 1.5 billion standard cubic feet per day of natural gas and associated gas liquids, increasing supply from Abu Dhabi’s onshore resources.

Three major construction contracts

The Umm Shaif project includes three engineering, procurement and construction (EPC) packages with a combined value of $5.1 billion (Dh18.8 billion).

ADNOC awarded the contracts to consortiums comprising leading UAE and international contractors, covering the major offshore infrastructure required to develop and bring the gas assets into production.

An additional $365 million (Dh1.3 billion) will be allocated to a 14-well drilling programme and integrated drilling services.

ADNOC Drilling will execute the programme over an 18-month period using three existing rigs, enabling the company to complete the work without deploying additional drilling units.

LNG capacity expansion targeted for 2035

The investment supports ADNOC’s broader strategy to strengthen its global LNG footprint and increase the volume of natural gas available for international markets.

The company recently established a global LNG marketing and trading platform at Abu Dhabi Global Market, with the goal of achieving a combined marketable LNG capacity of 47 million tonnes per year by 2035.

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