Abu Dhabi’s ADNOC announces major expansion of gas production plans

ADNOC has also outlined $55 billion (AED200 billion) in project awards between 2026 and 2028.

ADNOC announced a major expansion plan for gas production with a $6.2 billion (AED22.6 billion) final investment decision on July 21 for Abu Dhabi’s Umm Shaif Gas Cap.

TotalEnergies, Eni and China National Petroleum Corporation will participate alongside ADNOC. Production will exceed 600 million standard cubic feet per day by 2030. Volumes will include natural gas and associated gas liquids.

Umm Shaif output will equal almost 10 per cent of current UAE daily gas consumption. Supply will serve domestic industry, power generation, AI infrastructure and ADNOC’s expanding LNG operations.

Offshore contracts channel capital into UAE industry

Three engineering, procurement and construction packages account for $5.1 billion (AED18.8 billion) of the investment. ADNOC awarded the packages to consortiums comprising UAE and international contractors.

Contract execution will generate demand across fabrication, engineering, marine logistics, equipment supply and offshore installation. UAE manufacturers will compete for procurement volumes linked to the development’s large offshore infrastructure requirements.

ADNOC Drilling will deliver a separate $365 million (AED1.3 billion) drilling and integrated services programme. Crews will drill 14 wells across 18 months using three existing rigs. Existing fleet deployment reduces mobilisation requirements and raises asset utilisation across ADNOC Drilling’s offshore operations.

ADNOC has also outlined $55 billion (AED200 billion) in project awards between 2026 and 2028. That programme connects major EPC contractors with 70 UAE manufacturers qualified under ADNOC technical standards.

Gas capacity supports industrial and AI demand

Reliable gas supply supports continuous operations across metals, petrochemicals, manufacturing, utilities and data centres. Umm Shaif will add domestic production capacity as electricity demand rises across industrial clusters and digital infrastructure.

AI computing facilities require substantial, uninterrupted power volumes. ADNOC identifies AI infrastructure as a direct source of future gas demand alongside industrial expansion and population growth.

Additional domestic gas also strengthens feedstock availability for downstream operators. Producers can allocate higher volumes across power generation, industrial processing and LNG production without constraining supply to existing customers.

UAE gas reserves rank as the seventh largest globally, according to ADNOC’s announcement. Development activity is shifting more subsurface resources into commercial production while extending the operating life of mature offshore assets.

Umm Shaif remains Abu Dhabi’s longest operating offshore field. Its gas cap development applies existing offshore expertise, drilling capacity and infrastructure to open another production layer.

Abu Dhabi growth raises energy requirements

Abu Dhabi’s economy expanded 7.7 per cent year on year during the third quarter of 2025. Quarterly GDP reached a record $88.7 billion (AED325.7 billion).

Non-oil activity grew 7.6 per cent and generated $47.8 billion (AED175.6 billion), equal to 54 per cent of quarterly output. Abu Dhabi GDP increased 5 per cent across the first nine months of 2025. Non-oil growth reached 6.8 per cent during that period.

Construction expanded 13.9 per cent in the third quarter, while transport and storage advanced 13.8 per cent. Manufacturing generated $8.3 billion (AED30.5 billion) and represented 9.4 per cent of GDP.

Electricity, gas and water supply grew 16.2 per cent. That sector produced $1.7 billion (AED6.2 billion) in value added during the quarter.

Sustained industrial growth requires corresponding increases in generation capacity, fuel availability and transmission infrastructure. Umm Shaif adds supply against that expanding consumption base.

LNG expansion opens additional revenue channels

ADNOC’s gas programme extends beyond domestic supply. Additional upstream production will support LNG sales across international markets and broaden Abu Dhabi’s energy export revenues.

ADNOC launched a global LNG marketing and trading platform within Abu Dhabi Global Market. Operations target 47 million tonnes per annum of combined marketable LNG capacity by 2035.

Umm Shaif follows Abu Dhabi’s award of the Bab Gas Cap concession. Bab is expected to unlock another 1.5 billion standard cubic feet per day of gas and associated liquids.

Combined production from both developments would exceed 2.1 billion standard cubic feet per day. That volume expands domestic allocation options and supplies ADNOC’s LNG growth pipeline.

International participation from TotalEnergies, Eni and CNPC also directs long-term capital and technical capability into Abu Dhabi’s upstream sector. Partnership structures distribute project expenditure while retaining ADNOC’s operating scale and access to global customers.

Umm Shaif’s 2030 production schedule aligns new gas capacity with rising industrial, digital and LNG requirements. Project spending will reach contractors earlier through drilling, fabrication, procurement and offshore construction.