Adnoc Gas Unleashes $8 Billion Expansion Plan After OPEC Exit

Adnoc Gas, the natural gas subsidiary of Abu Dhabi National Oil Company (ADNOC), plans to invest over $8 billion in expanding its production capacity. This move marks a significant step in the UAE's energy expansion strategy following its departure from OPEC.

The investment will be used to construct a new domestic gas processing unit at Habshan and build a new gas export facility in Ruwais, both part of the 'Rich Gas Development' project. This initiative aims to capture high-margin natural gas and convert it into high-value products such as ethane, propane, and butane.

Adnoc Gas's Chief Financial Officer, Peter Van Driel, noted that the UAE's broader oil production growth gives the company confidence in securing the required volumes and composition of natural gas. He emphasized that exiting OPEC did not suddenly make these projects viable, but rather reduced investment risk.

The total expenditure on the Rich Gas Development project will reach $13.2 billion, combining the current $8 billion with a previously announced $5 billion first-phase project. Adnoc Gas has raised its earnings guidance, lifting its 2030 EBITDA target to over $12 billion, representing approximately 60% growth from the 2023 baseline of $7.61 billion.