ADNOC has taken another major step in strengthening its long-term natural gas strategy by approving a Final Investment Decision (FID) worth $6.2 billion (AED 22.6 billion) for the development of the Umm Shaif Gas Cap project in Abu Dhabi. The project will be executed in collaboration with its international partners TotalEnergies, Eni, and China National Petroleum Corporation (CNPC), reinforcing the company's commitment to expanding gas production and supporting growing global energy demand.
The UAE possesses the world's seventh-largest natural gas reserves, and ADNOC is actively leveraging these resources to enhance domestic energy security while increasing liquefied natural gas (LNG) exports. As industries worldwide continue to seek reliable and comparatively lower-carbon energy sources, the company aims to strengthen its integrated gas business and meet increasing demand from industrial sectors, power generation, and rapidly expanding artificial intelligence infrastructure.
The Umm Shaif Gas Cap project is expected to produce more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids. This output represents nearly 10% of the UAE's current daily natural gas consumption, making it a strategically significant development for the country's energy landscape. Commercial production is anticipated to begin by 2030, providing a long-term boost to domestic gas availability and export capacity.
Commenting on the investment, Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, stated that the project is another important milestone in ADNOC's strategy to maximize the value of the UAE's extensive gas resources. He emphasized that increasing global demand for natural gas has encouraged ADNOC to expand its LNG platform while maintaining its position as a dependable energy supplier. The collaboration with international partners will also build upon decades of successful operations at Abu Dhabi's oldest offshore producing field.
The investment follows the recent concession agreement awarded for the Bab Gas Cap project, which is expected to unlock an additional 1.5 billion scfd of natural gas and associated liquids. Together, these developments strengthen the UAE's role as a reliable supplier in global energy markets while attracting long-term foreign investment into the country's energy sector.
As part of the approved investment, ADNOC awarded three engineering, procurement, and construction (EPC) contracts worth $5.1 billion (AED 18.8 billion) to consortiums comprising UAE-based and international contractors for major offshore infrastructure. In addition, ADNOC Drilling secured a $365 million (AED 1.3 billion) contract to execute a 14-well drilling campaign over the next 18 months using three existing offshore rigs. The project aligns with ADNOC's broader objective of expanding its LNG marketing platform, which aims to achieve 47 million tonnes per annum of marketable LNG capacity by 2035.
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