Overview
Natural gas has become the centrepiece of ADNOC’s medium-term growth strategy, driven by the UAE’s need to achieve gas self-sufficiency and the fuel’s role as a transition bridge toward lower-carbon energy systems. ADNOC Gas, listed on the ADX in 2023, manages gas processing, fractionation, and transmission across Abu Dhabi’s extensive pipeline network. The company processes over 10 billion standard cubic feet per day of raw gas.
Current Status
The Hail and Ghasha ultra-sour gas development represents the largest offshore sour gas project in the world. Located in the Arabian Gulf, the programme will unlock over 1.5 billion standard cubic feet per day of gas from reservoirs containing high concentrations of hydrogen sulphide. First gas is targeted for 2025-2026, with full ramp-up by 2028. ADNOC has invested over $15 billion in the development.
Separately, ADNOC signed a long-term agreement with ADNOC LNG to supply liquefied natural gas for export, and the company is evaluating a new LNG export facility in Fujairah to complement the existing Das Island plant.
Key Data
| Metric | Value |
|---|---|
| Current Gas Processing Capacity | 10+ bscf/d |
| Hail & Ghasha Target Output | 1.5 bscf/d |
| Hail & Ghasha Investment | $15 bn+ |
| ADNOC Gas IPO Valuation | $50.8 bn |
| Das Island LNG Capacity | 5.8 MTPA |
| Gas Self-Sufficiency Target Year | 2027 |
Strategic Significance
Gas self-sufficiency eliminates the UAE’s dependence on Qatari pipeline imports via the Dolphin pipeline, which currently supplies roughly one-third of the country’s gas needs. Achieving independence in gas supply is as much a national security imperative as an economic one. Additionally, natural gas is the primary fuel for electricity generation and water desalination, meaning gas security is inseparable from power and water security.
Vision 2031 Alignment
The gas strategy supports Vision 2031 by securing the domestic energy foundation upon which industrial diversification depends. Reliable, affordable gas supply enables expansion of aluminium smelting, petrochemicals manufacturing, and district cooling infrastructure. The eventual development of LNG export capacity transforms the UAE from a net gas importer into a potential exporter, generating new revenue streams and strengthening the country’s position in global energy markets.