The Abu Dhabi National Oil Company (ADNOC) has announced a $6.2 billion investment aimed at developing the gas segment of the Umm Shaif offshore oil and gas field. This project is part of a strategy to expand natural gas production and liquefied natural gas (LNG) exports.
The project has gained particular significance against the backdrop of potential supply disruptions in the Strait of Hormuz. This strategic waterway accounts for about 20% of global LNG trade, highlighting the vulnerability of global energy supply chains.
ADNOC is developing the Umm Shaif field, which is the oldest operational offshore field in Abu Dhabi, in collaboration with TotalEnergies, Eni, and China National Petroleum Corporation (CNPC). It is expected that by 2030, the field will produce more than 600 million standard cubic feet of natural gas and associated gas liquids per day, equivalent to about 10% of the UAE's current daily gas consumption.
The UAE aims to utilize its natural gas reserves more efficiently while meeting domestic energy demand and expanding its presence in the international LNG market. The country has the seventh-largest proven natural gas reserves in the world and currently produces more than 4 million barrels of oil per day.
Since the beginning of this year, after exiting OPEC, the UAE is no longer operating under production restrictions and plans to increase oil production to over 5 million barrels per day by next year. “ADNOC is accelerating the implementation of its comprehensive gas strategy to fully utilize the UAE's vast gas resources and expand our global LNG platform in the face of growing global demand for natural gas,” said ADNOC CEO Sultan Ahmed Al Jaber.
