ADNOC Approves $6.2 Billion Umm Shaif Gas Cap Investment
Project to boost UAE gas output and energy security by 2030
ADNOC has approved a $6.2 billion investment to develop the Umm Shaif Gas Cap. The project is expected to release gas volumes equal to almost 10% of the UAE’s current daily gas use.
The final investment decision covers the gas cap at Abu Dhabi’s longest-running offshore field. ADNOC is working on this project with TotalEnergies, Eni, and China National Petroleum Corporation.
Production is expected to start by 2030. The project will add more than 600 million standard cubic feet per day of natural gas and associated gas liquids to the UAE’s energy supply.
This extra output will help support the UAE’s energy security and also supply industrial customers and infrastructure linked to the growth of artificial intelligence, according to ADNOC.
Expanding the UAE’s gas supply
The UAE has the world’s seventh-largest gas reserves. This gives ADNOC a strong base as it increases production and grows its liquefied natural gas business.
Natural gas from Umm Shaif will serve ADNOC’s local and international customers. It will also help meet rising demand from industry and power generation.
"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," 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 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 Umm Shaif decision follows the award of the Bab Gas Cap concession agreement by the Supreme Council for Financial and Economic Affairs.
Bab is expected to add another 1.5 billion standard cubic feet per day of natural gas and associated gas liquids. This will increase supply from Abu Dhabi’s onshore resources.
Three major construction contracts
The Umm Shaif investment includes three engineering, procurement and construction packages. Their total value is $5.1 billion, or Dh18.8 billion.
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