Abu Dhabi National Oil Company (ADNOC) has approved a final investment decision worth $6.2 billion to develop the Umm Shaif Gas Cap project, as the United Arab Emirates seeks to expand gas production and strengthen its position as a global supplier of liquefied natural gas (LNG).
The project, to be developed with partners TotalEnergies, Eni and China National Petroleum Corporation (CNPC), is expected to produce more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids from 2030, ADNOC said on Tuesday.
The planned output is equivalent to nearly 10% of the UAE’s current daily gas consumption and forms part of ADNOC’s strategy to increase gas production to meet rising domestic demand while expanding LNG exports.
The UAE, which holds the world’s seventh-largest natural gas reserves, has been investing heavily in gas production as demand for lower-carbon fuels grows and as the country seeks to support industrial development and the expansion of artificial intelligence-related infrastructure.
“The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC’s position as a reliable gas supplier,” Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO said in a statement.
The FID includes three engineering, procurement and construction (EPC) packages totaling $5.1 billion for large-scale offshore infrastructure awarded by ADNOC to consortiums including major UAE and international contractors.
The development also includes a $365 million 14-well drilling and integrated drilling services program to be delivered by ADNOC Drilling over 18 months using three existing rigs.
