ADNOC Approves $6.2 Billion Umm Shaif Gas Project to Secure UAE Supply

Abu Dhabi National Oil Company (ADNOC) has approved a $6.2 billion final investment decision to develop the Umm Shaif Gas Cap, a significant step in its strategy to expand natural gas production and liquefied natural gas exports. Located at Abu Dhabi's longest-producing offshore field, the project is expected to deliver more than 600 million standard cubic feet per day of natural gas and associated gas liquids by 2030. This output volume represents nearly 10% of the UAE's current daily gas consumption, bolstering domestic energy security while increasing supplies for international markets.

The development will be executed alongside ADNOC's concession partners, including TotalEnergies, Eni, and China National Petroleum Corporation. To advance the project, ADNOC has awarded three engineering, procurement and construction contracts worth a combined $5.1 billion to consortiums of UAE and international contractors. Additionally, the company approved a $365 million drilling program covering 14 wells, which will be carried out by ADNOC Drilling over an 18-month period using three existing rigs.

This investment aligns with ADNOC's broader gas expansion strategy, which aims to monetize the UAE's vast natural gas resources while growing its global LNG business. The company has previously announced plans to establish a global LNG marketing and trading platform and is targeting 47 million tonnes per annum of marketable LNG capacity by 2035. The initiative supports the UAE's position as a long-term supplier of lower-carbon energy to global markets, meeting rising domestic demand from industry and artificial intelligence infrastructure.

The announcement follows the recent award of the Bab Gas Cap concession by Abu Dhabi's Supreme Council for Financial and Economic Affairs. This separate but related development is expected to unlock an additional 1.5 billion standard cubic feet per day of natural gas and associated gas liquids. With the UAE holding the world's seventh-largest natural gas reserves, ADNOC is investing heavily in upstream gas developments to address growing energy needs.

The move comes amid a tightening global supply outlook and rising oil prices, driven by geopolitical tensions in the Middle East. While broader energy markets have seen volatility, with US exploration and production firms such as Antero Resources reporting record production and share price increases, ADNOC's focus remains on steady capacity expansion. The Umm Shaif Gas Cap project underscores the company's commitment to securing long-term supply chains in an increasingly complex energy landscape.