ADNOC Gas has reached final investment decision (FID) and signed $5 billion of contracts on phase one of its Rich Gas Development (RGD) Project, a milestone for the company's largest ever capital spend.
The deals include the addition of significant processing equipment to propel greater throughput and improve operating performance at four ADNOC Gas Facilities: Asab, Buhasa, Habshan (Onshore), and the Das Island liquefication plant (Offshore). The company is to take Final Investment Decisions on two follow-on phases of RGD project at Habshan and Ruwais to enable the supply of greater capacity production to meet rising market demand.
The RGD project will enable the exploitation of new gas reservoirs, which are critical to increasing liquid gas exports, helping to achieve gas self-sufficiency in the UAE, and providing essential feedstock to the country's growing petrochemical industry.
Three tranches of EPCM contracts have been awarded for phase 1. The initial tranche of $2.8 billion has been awarded to Wood for the Habshan facility. Two other tranches for $1.2 billion for the Das Island liquefaction plant and $1.1 billion for the Asab and Buhasa facilities have been awarded to two consortia: Petrofac; and Kent Plc.
"The award of the FID and contract for the first phase of the Rich Gas Development project is a critical milestone in ADNOC Gas' strategy to deliver +40% EBITDA growth over 2023-2029," ADNOC Gas Chief Executive Officer Fatema Al Nuaimi stated. "This intended investment is aimed at delivering significant new value to our shareholders and to sustain long-term growth for the company, its people, and the UAE.".
Phase 1 of the RGD project is debottlenecking and optimizing existing gas assets and monetizing new and high-value gas streams. In line with ADNOC Gas' long-term growth-oriented strategy and future-proofing its business, the RGD project aligns with the company's vision of bringing its principal growth initiatives between 2025 and 2029.
In addition, the RGD project highlights ADNOC Gas' activities to maximize In-Country Value (ICV) through a vision to create hundreds of new, on-field technical positions by 2029, contributing to the UAE's economic growth.