ADNOC has approved a $6.2 billion investment to expand gas production at Umm Shaif, boosting UAE energy security, LNG capacity and future export potential, reports Asian Lite News Desk
ADNOC has approved a final investment decision (FID) worth $6.2 billion (AED22.6 billion) to develop the Umm Shaif Gas Cap in Abu Dhabi, marking another major step in the UAE’s strategy to expand natural gas production, strengthen energy security and meet rising global demand for lower-carbon energy.
The project will be developed in partnership with international energy companies TotalEnergies, Eni and China National Petroleum Corporation (CNPC), further reinforcing Abu Dhabi’s long-standing collaboration with global industry leaders in the development of its offshore energy resources.
The investment forms part of ADNOC’s integrated gas growth strategy, which seeks to unlock more of the UAE’s vast natural gas reserves while expanding the country’s liquefied natural gas (LNG) production and export capabilities. The UAE holds the world’s seventh-largest proven natural gas reserves and has been increasing investment in the sector to meet growing domestic demand while strengthening its position as a reliable supplier to international markets.
Once operational, the Umm Shaif Gas Cap development is expected to produce more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids. The additional output is equivalent to nearly 10 per cent of the UAE’s current daily gas consumption and is expected to play an important role in supporting the country’s energy requirements as industrial activity and artificial intelligence (AI) infrastructure continue to expand.
Production from the project is expected to begin by 2030.
The latest investment comes amid increasing global demand for natural gas as countries seek dependable and comparatively lower-carbon energy sources to support economic growth and the transition towards cleaner energy systems. ADNOC said the development will help ensure long-term energy security for the UAE while enhancing its ability to supply international customers with reliable gas exports.
Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group Chief Executive Officer, said the company was continuing to accelerate its integrated gas strategy to maximise the value of the country’s extensive gas resources.
He said the Umm Shaif Gas Cap project represents another important milestone in expanding ADNOC’s global LNG platform and strengthening its role as a dependable supplier of natural gas at a time when international demand continues to grow.
Dr Al Jaber also highlighted the company’s continued collaboration with its international partners, saying the project builds on decades of responsible development of Abu Dhabi’s longest-operating offshore field while creating long-term value for the UAE economy and global customers.
The investment follows the recent award of the Bab Gas Cap concession agreement by the Supreme Council for Financial and Economic Affairs (SCFEA), another major gas development expected to unlock around 1.5 billion standard cubic feet per day of additional natural gas and associated gas liquids.
Together, the two projects form part of ADNOC’s broader strategy to significantly expand the UAE’s gas production capacity over the coming decade.
The Umm Shaif Gas Cap development also supports ADNOC’s ambition to become a leading global player in the LNG market. Earlier this year, the company launched a global LNG marketing and trading platform within Abu Dhabi Global Market (ADGM), with plans to build a combined marketable LNG capacity of 47 million tonnes per annum by 2035.
The final investment decision includes three major engineering, procurement and construction (EPC) packages valued at approximately $5.1 billion (AED18.8 billion). These contracts have been awarded to consortiums comprising leading UAE-based and international engineering and construction companies responsible for delivering the project’s large-scale offshore infrastructure.
In addition, ADNOC Drilling has secured a $365 million (AED1.3 billion) contract covering a 14-well drilling and integrated drilling services programme. The work will be carried out over an 18-month period using three existing offshore drilling rigs, helping accelerate project delivery while making efficient use of existing assets.
The Umm Shaif field is one of Abu Dhabi’s most established offshore producing assets, and the new Gas Cap development is expected to unlock additional reserves while extending the field’s productive life through advanced technology and modern infrastructure.
