Abu Dhabi's Adnoc Gas has awarded contracts worth $5 billion for a key project that is part of its major operational expansion and self-sufficiency strategy.
The final investment decision is the first of three phases for the Rich Gas Development project, which is expected to boost the company's Ebitda by 40 per cent through 2029, Adnoc Gas said in a statement on Tuesday.
Ebitda – or earnings before interest, taxes, depreciation and amortisation – is a key metric used by companies to measure core profitability.
The contracts are part of what Adnoc Gas, a unit of state-owned energy major Abu Dhabi National Oil Company, said is its biggest ever capital investment. They involve boosting key processing units to increase efficiency across its four gas facilities in Asab, Buhasa, onshore Habshan and Das Island, the company said.
The engineering, procurement and construction management contracts were awarded in three tranches: Scotland-based professional services firm Wood secured $2.8 billion for Habshan, while a consortia of London-based Petrofac and Dubai's Kent received $1.2 billion and $1.1 billion for Das Island, and Asab and Buhasa, respectively.
Adnoc Gas first hinted in November that it would make the investment decision for the Rich Gas Development project in 2025. A decision for another major project, the Bab Gas Cap development, is expected in 2026.
The Rich Gas Development project will help develop new gas reservoirs, which in turn, would increase liquid gas exports, support the UAE's gas self-sufficiency agenda and provide feedstock to the country’s growing petrochemical industry, the company said.
The first phase of the project will focus on optimising and removing bottlenecks in existing Adnoc Gas assets while unlocking new and valuable gas streams, in addition to future-proofing its business.
The company plans to decide on the next two phases of the project at Habshan and Ruwais to “enable the delivery of greater production capacity to meet growing market demands”, but did not give a timeline.
The investment in the Rich Gas Development project marks a “significant milestone” for the company, Fatema Al Nuaimi, chief executive of Adnoc Gas, said in the statement.
“This strategic investment is expected to deliver significant new value for our shareholders and enable continued sustainable growth for the company, our employees and the UAE,” she added.
Adnoc Gas, which has access to 95 per cent of the UAE's natural gas reserves, is looking to boost exports of products such as liquefied natural gas, liquefied petroleum gas and naphtha.
Its customers in the Emirates include utilities and industrial companies, which are supplied commercial quantities through an extensive network of pipelines.
Adnoc Gas, alongside other Adnoc units, has been boosting investments to expand its geographical and operational reach.
In May, the company reported a 7 per cent year-on-year increase in net income to $1.27 billion, driven by strong domestic demand for gas and continued economic growth in the UAE, the Arab world's second-largest economy.
Adnoc Gas is also eligible for potential inclusion in the Morgan Stanley Capital International and Financial Times Stock Exchange emerging market indexes as early as June and September respectively, it said.
Adnoc sold part of its stake in the subsidiary to institutional investors as it looks to improve liquidity and raise capital. The recently completed offering of 3.1 billion shares in Adnoc Gas increased the free float by 4 per cent to 9 per cent.
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The Transfiguration
Director: Michael O’Shea
Starring: Eric Ruffin, Chloe Levine
Three stars
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
THE BIO
Favourite author - Paulo Coelho
Favourite holiday destination - Cuba
New York Times or Jordan Times? NYT is a school and JT was my practice field
Role model - My Grandfather
Dream interviewee - Che Guevara
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Killing of Qassem Suleimani
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
More from Neighbourhood Watch:
Women & Power: A Manifesto
Mary Beard
Profile Books and London Review of Books
RACE CARD
4.30pm: Maiden Dh80,000 1,400m
5pm: Conditions Dh80,000 1,400m
5.30pm: Liwa Oasis Group 3 Dh300,000 1,400m
6pm: The President’s Cup Listed Dh380,000 1,400m
6.30pm: Arabian Triple Crown Group 2 Dh300,000 2,200m
7pm: Wathba Stallions Cup Handicap (30-60) Dh80,000 1,600m
7.30pm: Handicap (40-70) Dh80,000 1,600m.
