Energy

ADNOC approves $6.2bn Umm Shaif Gas Cap project to expand UAE gas production

Photo Credit : WAM

ADNOC has approved a $6.2 billion (AED22.6 billion) final investment decision (FID) to develop the Umm Shaif Gas Cap project, marking another major step in the UAE’s strategy to expand natural gas production and strengthen its position in the global LNG market.

The project will be developed in partnership with TotalEnergies, Eni, and China National Petroleum Corporation (CNPC). Once operational, it is expected to produce more than 600 million standard cubic feet of natural gas per day (scfd) along with associated gas liquids, representing nearly 10% of the UAE’s current daily gas consumption. Production is targeted to begin by 2030.

The investment supports ADNOC’s broader strategy to unlock the UAE’s substantial gas reserves and meet rising domestic and international demand for lower-carbon energy. The additional gas supply is also expected to support industrial development and the growing energy requirements of artificial intelligence (AI) infrastructure.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said the investment reflects the company’s commitment to expanding its integrated gas business while strengthening the UAE’s role as a reliable global energy supplier.

He added that the project builds on decades of responsible development at Abu Dhabi’s longest-producing offshore field and highlights the strong collaboration between ADNOC and its international partners.

The Umm Shaif Gas Cap investment follows the recent concession award for the Bab Gas Cap project by the Supreme Council for Financial and Economic Affairs (SCFEA), which is expected to unlock an additional 1.5 billion scfd of natural gas and associated gas liquids.

The announcement also comes after ADNOC established its global LNG marketing and trading platform at Abu Dhabi Global Market (ADGM). The company aims to achieve a combined marketable LNG capacity of 47 million tonnes per annum by 2035.

As part of the development, ADNOC has awarded three engineering, procurement and construction (EPC) contracts worth a combined $5.1 billion (AED18.8 billion) to consortiums involving leading UAE and international contractors for major offshore infrastructure works.

The project also includes a $365 million (AED1.3 billion) drilling programme covering 14 wells, which will be carried out by ADNOC Drilling over an 18-month period using three existing drilling rigs.

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