UAE to invest $6.2 billion in Abu Dhabi gas project

Abu Dhabi National Oil Company (ADNOC) will invest $6.2 billion in an offshore Abu Dhabi gas project, the firm announced on Tuesday.

The final investment decision covers the Umm Shaif Gas Cap, developed with France's TotalEnergies, Italy's Eni and China National Petroleum Corporation, as the UAE works to expand its gas output and its LNG platform.

What is the new oil and gas project in Abu Dhabi?

The Umm Shaif Gas Cap is an offshore field being developed by ADNOC alongside TotalEnergies, Eni and China National Petroleum Corporation. The $6.2 billion project is expected to produce more than 600 million standard cubic feet of gas per day from 2030, along with associated gas liquids, according to ADNOC.

Why is ADNOC expanding its gas investment?

Industry minister Sultan Ahmed Al Jaber said ADNOC is accelerating its integrated gas strategy to further harness the UAE's vast gas resources. Al Jaber, who also serves as ADNOC group chief executive, said the move would expand the UAE's LNG platform as global demand for natural gas continues to rise. The Umm Shaif decision reflects that broader push to grow domestic gas production.

What challenges are Gulf gas producers facing?

The investment comes as hydrocarbon-rich Gulf nations face difficulty boosting output following Iranian attacks and the closure of the Strait of Hormuz, a vital waterway for energy exports.

In May, the UAE said its main gas-processing complex, the Habshan site in Abu Dhabi, would not return to full capacity until next year, after it was targeted during the Middle East war. The Umm Shaif project forms part of ADNOC's response to that pressure on regional supply.