Adnoc has taken a $6.2 billion final investment decision to develop the Umm Shaif gas cap, unlocking more than 600 million standard cubic feet per day of natural gas and associated gas liquids, equivalent to nearly 10% of the UAE's current daily gas consumption.
The company awarded three engineering, procurement and construction packages totaling $5.1 billion for large-scale offshore infrastructure development to consortiums including major UAE and international contractors. The investment also includes a $365 million, 14-well drilling and integrated drilling services programme to be delivered by Adnoc Drilling over 18 months using three existing rigs.
Production from the development is expected by 2030. Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc's managing director and group chief executive, said the final investment decision represents another important milestone in delivering the company's gas growth strategy and reinforcing Adnoc's position as a reliable gas supplier.
TotalEnergies, Italy's Eni and China National Petroleum Corporation are the international partners in the project. The Umm Shaif field is part of Adnoc's Umm Shaif and Nasr concession and has been helping to meet the world's energy demand for 64 years. Abu Dhabi's first offshore well, Umm Shaif 1, was drilled in 1958.
The latest investment decision follows the Supreme Council for Financial and Economic Affairs awarding the concession agreement for the Bab Gas Cap, which is expected to unlock an additional 1.5 billion scfd of natural gas and associated gas liquids. It also builds on Adnoc's launch of a global LNG marketing and trading platform in Abu Dhabi's financial centre ADGM, targeting 47 million tonnes per annum of combined marketable LNG capacity by 2035.
The push feeds into Adnoc's flagship Ruwais LNG project, expected to start commercial operations in 2028 and more than double the company's LNG production capacity to about 15 million tonnes a year. More than 90% of the project's 9.6 million tonnes per annum capacity has already been committed to international customers through long-term agreements, including a 15-year deal with Japan's Inpex signed this month to supply one million tonnes per annum.
Ruwais LNG, which will be the first LNG export facility in the Middle East and Africa to run on clean power, is backed by equity partners BP, Japan's Mitsui, Shell and TotalEnergies, each holding a 10% stake. Adnoc Gas CEO Fatema Al Nuaimi has said Ruwais LNG will open a new chapter for the UAE, positioning the country as a net exporter of gas.
The UAE holds the world's seventh-largest gas reserves. Global LNG demand is forecast to rise between 54% and 68% by 2040, and between 45% and 85% by 2050 from 422 million metric tonnes in 2025, boosted by growing Asian appetite, according to Shell. Adnoc's board has approved capital investments of $150 billion for 2026-2030, of which $20 billion is earmarked for gas alone, underscoring the strategic importance of gas in the UAE's energy transition and export ambitions.
