ADNOC Gas advances largest-ever gas processing expansion

ADNOC Gas has taken FID on and awarded EPC contracts for Phases 2 and 3 of its multibillion-dollar RGD project.

Abu Dhabi National Oil Co. (ADNOC) subsidiary ADNOC Gas PLC has let a contract to Tecnimont SPA—a subsidiary of Maire SPA—to provide a suite of services for the third phase of the operator’s broader multibillion-dollar, multiphased Rich Gas Development (RGD) project that aims to expand the company’s natural gas processing capacity to meet rising energy demand and secure the United Arab Emirates’ (UAE) reliability as a global energy supplier.

As part of the $4.3-billion contract officially revealed on Aug. 10 following intimations to the market in releases dated June 4 and May 20 that withheld the identity of the operator and project, Tecnimont will deliver engineering, procurement, and construction (EPC) services for ADNOC Gas’ RGD Phase 3 expansion involving the addition of a fifth NGL fractionation unit at the Ruwais NGL complex in Abu Dhabi, Maire said.

Alongside the NGL fractionation unit designed to separate various hydrocarbon components, as well as treatment and sweetening systems to remove impurities and ensure product quality, Maire confirmed Tecnimont’s scope of work also will cover EPC for a new regeneration gas treatment unit, a propane refrigeration system, ancillary systems, and associated storage installations of the RGD Phase 3 project.

Scheduled for completion in 2030, the Phase 3 plant will have an output capacity of 23,000 tonnes/day, equivalent to about 8 million tonnes/year (tpy), according to the service provider.

Confirmation of the Phase 3 contract award follows ADNOC Gas’ announcement earlier on Aug. 10 that it had taken final investment decision on both Phase 2 and Phase 3 of the RGD project, including the operator’s separate and concurrent award to Wison Engineering Ltd. for the project’s second phase.

As part of the $3.9-billion RGD Phase 3 contract, Wison Engineering will deliver EPC services for a new 670-MMcfd natural gas processing train at the operator’s Habshan complex that—scheduled for completion in 2029—will expand the complex’s processing capacity, as well as enhance the site’s operational flexibility and support the UAE's expanding downstream and petrochemical sectors, ADNOC Gas said.

Official FIDs on and awards of Phase 2 and Phase 3 contracts for the RGD project follow the operator’s confirmation in June 2025 of reaching FID and awarding contracts for RGD’s first $5-billion phase, which will involve major upgrades and expanding certain gas processing units by 2027 to increase throughput and improve operational efficiency across four ADNOC Gas complexes, including Asab, Buhasa, Habshan (onshore), and the Das Island liquefaction plant (offshore).

At an overall cost of $13.2 billion for all three phases, ADNOC Gas said the RGD project—the operator’s largest-ever capital investment—comes as part of the company’s commitment to increasing recovery of higher-value liquids from domestic natural gas resources both for export and as critical feedstock for the UAE’s growing industrial and petrochemical sectors.

Alongside contributing to helping unlock new in-country gas resources, the project also aims to support domestic power generation and economic growth within the UAE, including new technical employment opportunities.

Now derisked following the UAE’s exit from the Organization of the Petroleum Exporting Countries (OPEC) in May—a move which eliminates production ceilings to enable more rich gas production supporting the project’s profitability—the three-phased RGD will be capable of accommodating associated gas consistent with 5 million b/d of domestic oil production, with a further upside if production increases beyond that level, ADNOC Gas said in an Aug. 10 presentation to investors.

“With the [FID] and contract awards for [the RGD project], we are not only accelerating one of the world's largest gas-processing growth programs—we are raising our ambition, targeting 60% EBITDA growth by 2030,” said Fatema Al Nuaimi, ADNOC Gas’ chief executive officer.

Alongside resulting in major expansions to the company’s gas processing and export capabilities, the strategic investments in the RGD project also “safeguard [the UAE’s] energy security, power its industrial growth, and ensure [the nation and ADNOC Gas] are ready to meet rising energy demand—at home and around the world,” Al Nuaimi said.

 

Additional operations updates

In addition to the RGD project, ADNOC Gas provided updates as part of its Aug. 10 quarterly earnings results on three of the operator’s other megaprojects currently underway.

ADNOC Gas said development activities continue to progress on its:

  • Maximization of ethane recovery and monetization (MERAM) project that—on schedule for completion in 2027—will deliver up to 3.4 million tpy of ethane and NGL production capacity to expand gas processing infrastructure at the operator’s existing onshore installations in southwestern UAE’s Abu Dhabi Emirate.
  • Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, which will have the capacity to produce up to 9.6 million tpy of low-carbon LNG and—upon completion in 2028—is set to become the first LNG export installation in the Middle East and Africa region to operate on clean power.
  • Onshore Bab Gas Cap (BGC) project in Abu Dhabi that will add more than 1.8 bcfd of gas processing capacity following its anticipated completion in 2029+.
  • Umm Shaif Gas Cap project offshore Abu Dhabi that intends to unlock more than 600 MMcfd of natural gas and associated gas liquids of production by 2030.
  • Sales Gas Pipeline Network Enhancement Program (Estidama), which aims to upgrade and expand UAE's natural gas pipeline network operated by ADNOC Gas to more than 3,500 km from 3,200 km increasing gas delivery volumes to the northern UAE.

Combined with the RGD, ADNOC Gas said it expects the four gas megaprojects to generate $13.4 billion in in-country value, reinforcing the company's contribution to the UAE's industrial development and economic diversification goals.

About the Author

Robert Brelsford

Downstream Editor

Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.

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