ADNOC Gas strengthens LNG position amid global market shifts

Ruwais LNG project advances ahead of schedule

The advanced pace of delivery at the Ruwais LNG project highlights its strategic importance. With a production capacity of 9.6 million tonnes per annum, ADNOC Gas reported that construction is progressing ahead of approved schedules, opening the possibility of bringing forward the start of commercial operations currently planned for the second half of 2028.

Once operational, the project is expected to increase the UAE’s total LNG production capacity to around 15 million tonnes per annum.

ADNOC Gas to acquire stake in Ruwais project

In a statement to Emirates News Agency (WAM), ADNOC Gas said it will acquire ADNOC’s stake in the Ruwais project upon completion, at an estimated cost of about US$5 billion. The company also confirmed it has secured long-term sales and purchase agreements covering more than 8 million tonnes per annum of the project’s output, allocating 80% to long-term contracts while marketing the remaining volumes on the spot market, following the business model used at the Das Island facility.

This strategy supports stable value generation during the early operational phase, while acknowledging that global market outlooks may change based on prevailing conditions.

Das Island facility upgrade and future plans

Regarding the Das Island LNG facility, which has operated for nearly five decades with a capacity of around 6 million tonnes per annum, ADNOC Gas said it completed a comprehensive upgrade programme last year, including expanding loading jetties to accommodate larger vessels. The next phase will involve a major refurbishment of trains one and two to maintain operational reliability.

The company reaffirmed its commitment to continued investment in the facility to enhance readiness, noting that capacity expansion plans are not currently under consideration due to evolving global energy markets.

Monitoring global demand and AI-driven growth

ADNOC Gas said it is closely monitoring global demand developments, including expected growth linked to the expansion of artificial intelligence data centres. These trends will help shape future priorities between meeting domestic demand and expanding exports.

Securing long-term contracts amid supply growth

ADNOC Gas has taken proactive steps to address expectations of increased global LNG supply in the second half of this year by securing several long-term contracts, particularly with customers in Asian markets. This ensures effective marketing of Ruwais LNG volumes and stable returns despite market volatility.

Over the past three years, the company signed multiple long-term agreements to supply annual LNG volumes ranging from 0.4 to 1.2 million tonnes under contracts lasting up to 14 years, strengthening its customer base and positioning as a reliable global supplier of lower-emissions LNG to fast-growing Asian markets.

Progress on rich gas development project

ADNOC Gas confirmed it is preparing to take the final investment decision on the second phase of the Rich Gas Development project. The first phase, approved in June 2025, is progressing on schedule and aims to add 1.5 billion cubic feet per day of processing capacity by 2027. This phase includes a programme to debottleneck operations at four key facilities: Asab, Buhasa, Habshan, and Das Island.

The second phase involves constructing a new fractionation unit, Train 5, at the Ruwais facility to produce liquefied petroleum gas, condensate, and naphtha, while the third phase includes adding a new gas processing train at the Habshan facility.

Phased growth strategy focused on efficiency

ADNOC Gas reiterated that its growth strategy follows a clear, phased approach focused on maximising existing production capacity, resolving operational bottlenecks to enhance efficiency, and expanding through new units when required to ensure optimal utilisation of company assets.