ADNOC Gas awards $5bn in contracts for phase one of Rich Gas Development project

Abu Dhabi-headquartered integrated gas producer ADNOC Gas Plc (ADX: ADNOCGAS) has formally taken the final investment decision (FID) on phase one of its multibillion-dollar Rich Gas Development (RGD) project. The Emirati energy major awarded $5 billion in Engineering, Procurement, and Construction Management (EPCM) contracts across four key facilities, marking the largest capital investment in the company’s history. The June 10 announcement aligns with ADNOC Gas’ strategic target of achieving over 40 percent growth in EBITDA between 2023 and 2029.

The first phase of the RGD project will see major expansions at the onshore Habshan, Asab, and Buhasa processing plants, along with liquefaction infrastructure enhancements at the offshore Das Island facility. Contracts have been split into three tranches and awarded to a mix of global and regional EPC leaders including Wood, Petrofac, and Kent Plc. Future investment decisions are expected to follow for phases two and three, centered on Habshan and Ruwais, further deepening the United Arab Emirates’ gas value chain.

How the Rich Gas Development project supports UAE gas self-sufficiency and exports

The Rich Gas Development initiative is not only central to ADNOC Gas’ operational growth but also critical to the UAE’s national energy strategy. Rich gas—hydrocarbon streams that include a higher concentration of natural gas liquids (NGLs)—offers enhanced commercial value across both export markets and downstream industrial sectors such as petrochemicals.

With phase one underway, ADNOC Gas will unlock access to untapped gas reservoirs and deploy advanced processing technologies to debottleneck existing infrastructure. According to company estimates, the project will contribute significantly to the UAE’s gas self-sufficiency, LNG export portfolio, and industrial feedstock supply for petrochemical plants.

Historical context shows that Abu Dhabi has been gradually pivoting toward gas monetization since 2019, when the Supreme Petroleum Council first greenlit several unconventional gas exploration zones. The RGD initiative builds on that momentum, positioning ADNOC Gas as the centerpiece of that strategy while enhancing national energy resilience amid global volatility in gas pricing and supply chains.

Which companies won the $5 billion ADNOC Gas contracts and what they cover

The $5 billion contract package has been distributed across three major EPCM assignments. Wood was awarded the largest share, with a $2.8 billion contract covering process capacity upgrades and integration work at the onshore Habshan plant. The remaining $2.3 billion was split between two consortia: Petrofac and Kent Plc. These groups will handle improvements at Das Island ($1.2 billion) and Asab–Buhasa ($1.1 billion), respectively.

At Habshan, the upgrades will include new high-efficiency gas processing trains, condensate recovery systems, and emissions mitigation units. Das Island will see liquefaction infrastructure expanded and digital control systems overhauled to meet export scalability requirements. Meanwhile, Asab and Buhasa will benefit from new gas sweetening units and facility interconnections to improve throughput reliability.

Each of these developments is expected to begin construction in Q4 2025, with initial commissioning scheduled for late 2027. The projects are expected to create significant capacity additions and operating cost efficiencies, in line with ADNOC Gas’ goal of optimizing its existing asset base while preparing for new production streams.

What investors are saying about ADNOC Gas’ $5B Rich Gas Development project

ADNOC Gas’ announcement of its largest-ever capital outlay was broadly welcomed by institutional stakeholders and analysts covering Gulf energy equities. Since its public listing on the Abu Dhabi Securities Exchange in early 2023, ADNOC Gas has signaled a strong intent to expand infrastructure and deepen its midstream presence. This $5 billion investment reaffirms that trajectory and is seen as a forward-looking bet on long-term demand stability for gas-based products.

Investor sentiment has remained positive post-announcement, with several regional asset managers highlighting the company’s track record of delivering multi-phase infrastructure projects on time and within budget. While short-term market reactions were measured due to macro headwinds in LNG pricing, analysts expect medium- to long-term re-rating potential for ADNOCGAS shares as the RGD project reaches execution milestones.

Equity research firms based in Dubai and Riyadh noted that the investment is underpinned by solid domestic fundamentals and offers potential for robust internal rates of return (IRR), especially if global LNG prices rebound by 2027. More importantly, they see the project as a hedge against regional gas demand uncertainty, given the UAE’s pivot toward hydrogen, ammonia, and industrial-scale decarbonization.

How ADNOC Gas plans to boost UAE jobs and local suppliers through the RGD project

A key pillar of the Rich Gas Development strategy is its alignment with the UAE’s In-Country Value (ICV) program. ADNOC Gas confirmed that over 60 percent of the contract value will flow into the domestic economy through procurement from local suppliers, job creation, and industrial support services.

By 2029, the energy producer aims to create hundreds of new field-based technical jobs across its upgraded sites, particularly in operations, mechanical engineering, and safety compliance roles. Training programs will be launched in partnership with national institutes to accelerate workforce readiness in advanced process control, emissions management, and plant digitalization.

In parallel, ADNOC Gas is mandating contractors to source fabrication modules, welding materials, and instrumentation systems from UAE-registered entities. The resulting demand boost is expected to benefit Abu Dhabi’s industrial zones, including Khalifa Industrial Zone Abu Dhabi (KIZAD), which houses a cluster of suppliers servicing the energy sector.

What to expect from phases two and three of ADNOC Gas’ Rich Gas Development plan

While phase one establishes foundational capacity across the four named sites, ADNOC Gas has signaled that phases two and three will be even more ambitious. The next stage is expected to focus on additional capacity at the Habshan supercomplex, where the company plans to co-locate gas processing with emerging blue hydrogen and carbon capture infrastructure.

Phase three is slated to drive infrastructure development at the Ruwais Industrial City, potentially including new gas export terminals, storage hubs, and advanced analytics systems to support smart grid readiness. These expansions will also tie into national plans to make Ruwais a downstream innovation center for low-carbon fuels, polymers, and specialty chemicals.

Institutional analysts suggest that if successfully executed, the full three-phase RGD program could position ADNOC Gas as one of the most advanced gas producers globally, capable of adapting its output mix to changing geopolitical and climate policy conditions.

How the RGD project could strengthen the UAE’s position in global LNG markets

The UAE has long been a key player in the liquefied natural gas (LNG) and natural gas liquids (NGL) market, but until recently, its production base lacked the modular scalability seen in markets like Qatar and the United States. The RGD project is set to change that equation by enabling flexible, high-volume processing linked to both domestic industrial zones and export terminals.

Once fully operational, the upgraded infrastructure will allow ADNOC Gas to pursue offtake agreements with Asian and European partners that require long-term supply assurance. The integration of rich gas and condensate handling also supports the country’s ambition to increase its share of high-value petrochemical exports, such as ethylene, propane, and butadiene derivatives.

This positions the UAE favorably in a global market where major players are facing rising costs, regulatory delays, or infrastructure bottlenecks. As such, the RGD project is expected to become a key enabler of the UAE’s energy diplomacy and economic diversification strategy through 2030 and beyond.

Why ADNOC Gas’ Rich Gas Development project is a long-term bet on energy resilience

ADNOC Gas’ decision to proceed with a $5 billion investment into the first phase of its Rich Gas Development project is a clear signal of confidence in the future of gas as a strategic energy asset. Beyond EBITDA expansion targets and export ambitions, this project aligns infrastructure growth with national policy objectives, including job creation, industrial localization, and carbon competitiveness.

With phases two and three on the horizon, and early investor sentiment remaining constructive, the RGD initiative may well redefine ADNOC Gas’ market standing by the end of the decade. More broadly, it underscores how the UAE is positioning itself as a regional leader not just in oil, but in technologically advanced, emission-conscious gas infrastructure.