ADNOC Gas awards $8.2 billion contracts for UAE processing expansion, targets 15 million tons LNG by 2028
Abu Dhabi state firm commits to Habshan and Ruwais plants, lifting EBITDA outlook 60% by 2030 as global LNG buyers secure supply.
ADNOC Gas will spend more than $8 billion on its Rich Gas Development project, the company said Monday (2026-08-10), targeting 60% growth in earnings before interest, tax, depreciation and amortization by 2030.6
The investment splits $3.9 billion toward a new gas processing train at the Habshan facility, to be built by Wison Engineering, and $4.3 billion for a natural gas liquids fractionation unit at Ruwais LNG. Slated to enter operation in late 2028, the project will more than double ADNOC Gas's existing LNG capacity to roughly 15 million tons per year.6
The final investment decision and contract awards mark one of the world's largest gas-processing growth programs. Asian buyers continue to lock in long-term LNG supply as global volumes tighten.6
The Emirati build-out comes as other major gas projects advance. In late June (2026-06-29), ADNOC's international investment arm XRG and Italy's Eni signed agreements to each acquire 32% stakes in three upstream gas blocks in Argentina's Vaca Muerta shale, alongside state-controlled YPF. Those blocks will feed the planned Argentina LNG export project.4,5,3
Eni's entry into Vaca Muerta unconventional basin, alongside YPF and XRG, strengthens the company's ability to develop world-scale gas resources and convert them into competitive LNG for international markets, according to a company executive. Vaca Muerta is one of the world's richest unconventional basins in terms of resources.3
Separately, Citigroup, Banco Santander and JP Morgan are working on roughly $1 billion in financing for a project by Transportadora de Gas del Sur in the same Argentine shale formation, according to people familiar with the matter.2
In China, deep coalbed gas has emerged as a key driver of natural gas output growth. PetroChina Coalbed Methane Company produced nearly 2 billion cubic metres of deep coalbed gas in 2024, part of a rapid increase to 2.5 billion cubic metres within three years, according to the National Energy Administration.1
China's coalbed methane reserves have grown by a cumulative 320 billion cubic metres over the past three years, with 77% of that increase coming from deep reserves, according to Zhou Lihong, executive director of PetroChina Coalbed Methane Company. By 2025, China's coalbed gas production is expected to reach 17 billion cubic metres.1
The country aims to confirm 50 trillion cubic metres of deep coalbed gas reserves by 2035, with annual production projected at 40 to 50 billion cubic metres.1
NYMEX Henry Hub front-month gas was trading at $2.80 per million British thermal units on Monday (2026-08-10), up 0.72%. ICE Endex TTF front-month was flat at €55.50 per megawatt-hour. JKM front-month Asian LNG was unchanged at $21.11 per million Btu.
The 15 million tons per year ADNOC Gas is targeting by late 2028 would add nearly 20 billion cubic metres of annual supply to the global LNG market. Whether the Habshan and Ruwais plants deliver on schedule shapes the flexibility Gulf exporters have to capture Asian premium pricing through 2029.6