ADNOC has approved a $6.2 billion (AED 22.6 billion) investment to develop the gas cap of the Umm Shaif field in Abu Dhabi, in the company’s latest move to increase natural gas supplies, amid expectations of continued growth in fuel demand in the future.
According to a statement by ADNOC, the company is scheduled to implement the project in cooperation with its partners TotalEnergies SE, Eni SpA and China National Petroleum Corp, with production expected to begin by 2030.
The project aims to produce up to 600 million standard cubic feet per day of natural gas and associated gas liquids, equivalent to about 10% of the UAE’s current gas consumption, and will contribute to enhancing energy security and meeting the needs of local sectors.
The final investment decision includes three engineering, procurement and construction contracts with a total value of $5.1 billion, dedicated to developing the marine infrastructure required for the project.
The project also includes a $365 million program being implemented by ADNOC Drilling to drill 14 wells over 18 months, using three existing drilling rigs.
ADNOC's efforts to increase gas production
ADNOC has recently intensified its efforts to increase gas supplies by developing new reserves within the UAE, defying regional turmoil resulting from the Iran war.
This includes the gas cap development agreement for the Bab field, which was concluded last month and is expected to enable an increase in production of up to 1.5 billion standard cubic feet per day.
Expansion of liquefied natural gas projects
These investments also coincide with the company's expansion into liquefied natural gas projects from the United States to Mozambique, along with its plan to more than double its liquefied natural gas export capacity in Abu Dhabi.
This month, the company also decided to merge its liquefied natural gas trading operations with ADNOC Gas and its investment arm XRG, aiming to increase the volumes marketed and traded by the unified platform to 47 million tons per year by 2035, including supplies from assets outside the UAE.
The Umm Shaif project is part of a $150 billion five-year spending plan unveiled by ADNOC late last year, which focuses on increasing local energy production capacity and making deals that support its international expansion.
