ADNOC invests $6.2 billion to boost gas production from an Abu Dhabi field

Bloomberg - ADNOC has approved a $6.2 billion (22.6 billion dirhams) investment to develop the gas cap of the Umm Shaif field in Abu Dhabi, in its latest move to boost natural gas supplies amid expectations of continued future growth in fuel demand.

According to a statement from ADNOC, the company will implement the project in partnership with its partners TotalEnergies, Eni, and China National Petroleum Corporation, 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 approximately 10% of the UAE’s current gas consumption, contributing to enhanced energy security and meeting the needs of local sectors.

ADNOC has recently intensified its efforts to increase gas supplies by developing new reserves within the UAE, defying regional disruptions stemming from the Iran war.

These investments also coincide with the company’s expansion into liquefied natural gas (LNG) projects ranging from the United States to Mozambique, alongside its plan to more than double its LNG export capacity in Abu Dhabi.

This month, the company also decided to merge its LNG trading operations with ADNOC Gas and its investment arm, XRG, aiming to raise the volumes marketed and traded through the unified platform to 47 million tons annually by 2035, including supplies from assets outside the UAE.