Adnoc Gas, a state-owned producer, is targeting a final investment decision (FID) for the next two phases of its Rich Gas Development (RGD) project by the first half of 2026. This strategic move is part of a broader plan to significantly increase the company's gas processing capacity before the end of the decade.

Project Details and Financial Scope

The two upcoming phases, potentially valued at up to $8 billion, involve constructing an extra processing train (Phase 2) and potentially an extra fractionation train (Phase 3). These additions are designed to produce more valuable gases ready for export. This expansion would substantially increase the company's committed capital expenditure, raising it from an already committed $20 billion to between $27 billion and $28 billion for the period leading up to 2030. The bid process for the new gas processing train for Phase 2, known as Habshan 7, is already underway.

Progress on RGD Phase 1

Earlier this year, Adnoc Gas reached an FID for the first phase of the RGD project and awarded $5 billion in engineering, procurement and construction management (EPCM) contracts. These contracts were awarded in three tranches to UK contractors:

• Wood received a $2.8 billion contract for the Habshan facility.
• A consortium led by Petrofac received a $1.2 billion contract for the Das Island liquefaction facility.
• A consortium led by Kent received a $1.1 billion contract for the Asab and Bu Hasa facilities.

The initial phase focuses on optimizing existing gas assets and unlocking new gas streams. The overall RGD project establishes surface facilities to handle additional associated gas from the P5 programme, which aims to increase oil production capacity to 5 million barrels per day by 2027.

Financial Performance

Despite a lower oil price environment, Adnoc Gas reported strong financial results. Third-quarter net income grew 8% year-on-year to $1.34 billion. Year-to-date net income reached $3.99 billion, exceeding market expectations. This robust performance is attributed to operational excellence and improved commercial agreements.

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