MARKET TRENDS

Can Rich Gas Reinvent the Gulf’s Energy Strategy?

A record ADNOC Gas program signals a regional pivot toward upgrading fields to meet rising gas demand

11 Oct 2025

Can Rich Gas Reinvent the Gulf’s Energy Strategy?

ADNOC Gas’s decision in June to approve the first phase of its Rich Gas Development scheme marks a shift in the Gulf. Rather than open vast new fields, producers are pouring money into old ones, hoping to squeeze more value from gas streams heavy with liquids. The firm has awarded contracts worth $5bn, the largest investment in its history, to expand and streamline processing across four core sites: Asab, Buhasa, Habshan and the Das Island liquefaction plant.

The plan is simple enough. By easing bottlenecks and refreshing ageing units, ADNOC Gas hopes to raise throughput and tap additional reservoirs. More sales gas, condensate and natural gas liquids would help meet growing domestic needs while boosting exports. The company cites the programme as central to its aim of lifting earnings by more than 40% between 2023 and 2029.

Phase one work has gone to familiar names. Wood has secured a multibillion dollar package at Habshan. Petrofac will handle upgrades on Das Island, while Kent will work at Asab and Buhasa. The engineering, procurement and construction management model is meant to keep cost and schedule in check while allowing the facilities to keep running, a delicate task in brownfield projects.

Analysts see the move as part of a wider regional surge in spending. Middle Eastern producers may invest about $130bn in oil and gas supply in 2025, roughly 15% of the global total. Saudi Arabia still dominates upstream budgets, yet the UAE is gaining ground as it seeks greater gas self sufficiency, more liquids for export and extra feedstock for petrochemicals.

Export projects add to the picture. Oman has begun building Marsa LNG at Suhar, a small but solar powered liquefaction plant aimed at marine fuel. Qatar continues to expand LNG capacity and shipping to keep its central role in global gas trade. Together with ADNOC Gas’s scheme, these efforts show how Gulf states are using liquids rich gas to adjust to shifting demand.

For the UAE, the near term prize is steadier supply at home as industry and power use grow. Upgrading existing assets allows the company to add volumes without waiting for fresh field developments. Other phases at Habshan and Ruwais are planned, pointing to years of work ahead.

Risks remain. Contractors are stretched, costs are rising and brownfield work is tricky. Softer global gas prices have also reminded exporters of the need for cheap, flexible supply. Even so, ADNOC Gas’s timing suggests that Gulf producers remain committed to long term gas strategies, betting that efficiency gains in old plants will matter as much as new finds.

Latest News

  • 7 Dec 2025

    Oman Bets on an AI Twin to Boost Its Oil Fields
  • 3 Dec 2025

    Saudi Shale Leap Redraws Gulf Energy Ambitions
  • 2 Nov 2025

    How AI Is Powering a New Middle East Energy Push
  • 11 Oct 2025

    Can Rich Gas Reinvent the Gulf’s Energy Strategy?

Related News

Oman Bets on an AI Twin to Boost Its Oil Fields

INNOVATION

7 Dec 2025

Oman Bets on an AI Twin to Boost Its Oil Fields
Saudi Shale Leap Redraws Gulf Energy Ambitions

INVESTMENT

3 Dec 2025

Saudi Shale Leap Redraws Gulf Energy Ambitions
How AI Is Powering a New Middle East Energy Push

TECHNOLOGY

2 Nov 2025

How AI Is Powering a New Middle East Energy Push

SUBSCRIBE FOR UPDATES

By submitting, you agree to receive email communications from the event organizers, including upcoming promotions and discounted tickets, news, and access to related events.