ADNOC Gas sets $8.2bn for rich gas expansion

ADNOC Gas has moved ahead with a major expansion of its Rich Gas Development project by taking final investment decisions on Phases 2 and 3 and awarding related engineering, procurement and construction contracts worth a combined $8.2 billion. The decisions mark a significant step in expanding the company’s gas processing and export capabilities to handle higher associated gas volumes and support downstream industrial demand.

The Rich Gas Development programme is designed to enhance processing of rich gas streams and increase output of marketable products. The latest approvals build on earlier project phases and are central to the company’s strategy to grow capacity across key onshore and downstream hubs.

Phase 2 of the Rich Gas Development project, to be delivered at the Habshan complex, has been awarded to Wison Engineering under an EPC contract valued at $3.9 billion. The scope of this phase focuses on expanding processing infrastructure at Habshan, one of ADNOC Gas’s core gas handling centers.

Phase 3 has been awarded to Tecnimont under a $4.3 billion EPC contract. This phase includes development of a natural gas liquids fractionation train at Ruwais, aimed at increasing processing of NGLs into higher-value products for domestic and export markets.

Together, the Phase 2 and Phase 3 awards reinforce ADNOC Gas’s plan to boost overall capacity across both the Habshan and Ruwais sites. The company positions these investments as integral to meeting growing demand from power generation, industrial users and international customers.

Alongside the project awards, ADNOC Gas updated its medium-term capital spending outlook. The company now expects to invest about $28 billion between 2026 and 2030 to support its revised growth ambition. This planned expenditure covers major projects such as the Rich Gas Development programme as well as broader capacity enhancements.

Reflecting its higher investment trajectory, ADNOC Gas has raised its targeted EBITDA growth to around 60% by 2030 versus 2023 levels. This compares with a previous target of more than 40% between 2023 and 2029, signalling a step-up in expected earnings expansion tied to new processing and export capabilities.

The strategic announcements were made in conjunction with the company’s second-quarter 2026 results. ADNOC Gas reported net income of $665 million for the period, underscoring continued profitability as major growth projects are advanced.

Operationally, the company reported that processing at the Habshan complex had been restored to about 85% of capacity following earlier disruptions. This recovery at a key gas processing hub supports current supply commitments and underpins the rationale for further expansion under the Rich Gas Development project.

Taken together, the new EPC awards, expanded investment plan and updated EBITDA target frame ADNOC Gas’s current growth phase around large-scale, long-term commitments to gas processing and export infrastructure.