ADNOC Gas plc has awarded $8.2 billion in engineering, procurement and construction (EPC) contracts for Phases 2 and 3 of its Rich Gas Development (RGD) Project, marking a major step in its long-term natural gas processing expansion strategy.
The company awarded a $3.9 billion contract for Phase 2 to Wison Engineering, while Tecnimont secured a $4.3 billion contract for Phase 3. The latest awards, combined with the $5 billion committed to Phase 1, bring total investment in the RGD project to $13.2 billion.
Phase 2 will involve the development of a new natural gas processing train at ADNOC Gas’ Habshan facility. The additional processing capacity is expected to increase throughput, improve operational flexibility and support the growing feedstock requirements of the UAE’s downstream and petrochemical industries.
Phase 3 will add a new natural gas liquids (NGL) fractionation train at Ruwais. The facility is expected to improve the recovery of higher-value NGLs from rich natural gas, supporting additional export volumes and strengthening ADNOC Gas’ international customer base.
The RGD project forms part of ADNOC Gas’ broader gas growth program, which also includes the Ruwais LNG, Maximizing Ethane Recovery and Monetization (MERAM), and Estidama projects. Together, these four megaprojects are expected to generate approximately $13.4 billion in In-Country Value for the UAE.
The company has also raised its long-term growth ambition following the latest investment decisions. ADNOC Gas now targets 60% EBITDA growth by 2030 compared with 2023, up from its earlier target of more than 40% growth over 2023–2029. The company expects to invest approximately $28 billion between 2026 and 2030 to support this growth strategy.
ADNOC Gas also reported resilient financial results for the second quarter of 2026. Net income reached $665 million, exceeding the company’s guidance range of $400 million to $600 million. The performance was supported by resilient margins in its domestic gas business despite a challenging operating environment.
The company’s expansion plans are expected to benefit from higher associated gas volumes as ADNOC advances its gas production capacity targets. Recent developments across the wider gas value chain, including the Bab Gas Cap and Umm Shaif Gas Cap projects, are also expected to increase gas and associated liquids entering ADNOC Gas’ integrated network.
However, maritime disruptions through the Strait of Hormuz affected product liftings during the second quarter. ADNOC Gas expects third-quarter net income of $600 million to $800 million, assuming continued disruption to maritime routes.
If maritime operations are fully restored by the fourth quarter and pricing conditions normalize, the company expects full-year 2026 net income of $3.5 billion to $4 billion. The RGD expansion is therefore expected to strengthen ADNOC Gas’ gas-processing and NGL capabilities while supporting the UAE’s downstream and petrochemical growth.
Product & Chemical Commodity Price Impact
ADNOC Gas’ $8.2 billion EPC awards are expected to increase natural gas processing and NGL recovery capacity in the UAE. Higher NGL availability could improve feedstock supply for ethane, propane and butane, supporting downstream petrochemical production. In the near term, the project is unlikely to materially affect regional chemical prices because the new capacity will take time to become operational. Over the longer term, increased ethane and LPG availability could place moderate downward pressure on feedstock prices if supply growth exceeds regional demand. Greater domestic feedstock availability may also support competitive production costs for ethylene, propylene and downstream polymers, potentially limiting upward price pressure across related chemical commodities.
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