UAE state energy company ADNOC has taken a final investment decision to develop the Umm Shaif Gas Cap at a cost of $6.2 billion (approximately €5.7 billion), unlocking gas volumes equivalent to almost 10% of the UAE's current daily consumption, as reported by Gulf News.

The project is being developed alongside ADNOC's international partners TotalEnergies, Eni and China National Petroleum Corporation at Abu Dhabi's longest-operating offshore field. Production is expected to begin by 2030, adding more than 600 million standard cubic feet per day of natural gas and associated gas liquids to the UAE's energy supply.

The additional output will support domestic energy security while supplying industrial customers and infrastructure linked to the growth of artificial intelligence, according to ADNOC.

The $6.2 billion investment encompasses three engineering, procurement and construction packages valued at a combined $5.1 billion (approximately €4.7 billion), awarded to consortiums of UAE and international contractors. A further $365 million (approximately €336 million) will fund a 14-well drilling and integrated drilling services programme, to be delivered by ADNOC Drilling over 18 months using three existing rigs.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO, said: "ADNOC is accelerating its integrated gas strategy to further harness the UAE's vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise. The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC's position as a reliable gas supplier. Together with our international partners, we are building on decades of responsible stewardship of Abu Dhabi's longest-operating offshore field to unlock lasting value for the UAE and our customers."

The Umm Shaif decision follows the award of the Bab Gas Cap concession agreement by the UAE Supreme Council for Financial and Economic Affairs. Bab is expected to add a further 1.5 billion standard cubic feet per day of natural gas and associated gas liquids from onshore resources, significantly expanding the UAE's total domestic gas production base.

The UAE holds the world's seventh-largest gas reserves. ADNOC recently launched a global LNG marketing and trading platform at Abu Dhabi Global Market, targeting a combined marketable LNG capacity of 47 million tonnes per year by 2035.