ADNOC approves first large-scale unconventional gas project at Ruwais

Summary

• ADNOC took the final investment decision on the Al Dhiyab unconventional gas development in Ruwais.
• Output is expected at 345 million standard cubic feet per day from 2029.
• The project targets domestic gas supply for industry and AI data centres.

The latest

ADNOC has taken the final investment decision on developing unconventional gas in the Al Dhiyab basin at Ruwais, the first large-scale project of its kind for the company. Production is expected to reach 345 million standard cubic feet of raw gas per day beginning in 2029 and continue for 25 years, according to WAM. The announcement was made during ADIPEC 2026.

Details

• The decision: ADNOC announced the final investment decision for the Al Dhiyab basin unconventional gas development project in Ruwais, according to WAM. A final investment decision is the point at which a company commits the capital required to move a project from planning into construction and execution.
• The output: The project is expected to produce 345 million standard cubic feet of raw gas per day starting in 2029, according to WAM. Production is planned to run for 25 years from that start date, making it a long-cycle supply source rather than a short-term addition.
• Expansion ceiling: ADNOC said capacity could be raised to 1 billion standard cubic feet per day, roughly three times the initial output. The company did not set out a timeline or the conditions under which that expansion would be triggered.
• A first for ADNOC: Al Dhiyab in Ruwais is ADNOC's first large-scale unconventional gas project, according to WAM. Unconventional gas is trapped in tight rock formations and requires different extraction techniques from conventional reservoirs, which has historically kept it outside the company's core production base.
• The venue: The announcement was made during the ADIPEC 2026 exhibition and conference, the energy industry gathering ADNOC uses to disclose major project decisions. No partners or contractors for the development were named in the announcement.
• Why domestic gas: Added domestic gas supply is intended to serve industrial users and the power demand created by artificial intelligence data centres, a fast-growing load in the UAE. ADNOC did not break down how volumes would be allocated between those uses.
• The location: Ruwais is ADNOC's main downstream and industrial hub on the Abu Dhabi coast, hosting refining, petrochemicals and gas processing. Siting an unconventional gas development there places new supply close to existing industrial offtake rather than distant export infrastructure.

Background

The UAE has pushed to become self-sufficient in natural gas, with ADNOC expanding both conventional output and processing capacity. Unconventional resources had remained largely undeveloped until this decision.

Between the lines

The 2029 start date and the 25-year production horizon point to a supply commitment built around long-term industrial demand rather than spot market conditions. The stated expansion ceiling of 1 billion standard cubic feet per day, nearly triple the initial rate, suggests ADNOC is treating Al Dhiyab as a platform that can scale with domestic consumption, including the data centre load it cited.

What's next

Watch for ADNOC to name contractors and partners for the Al Dhiyab development, disclose drilling timelines ahead of the 2029 start, and clarify the conditions for scaling output toward 1 billion cubic feet per day.

Source: WAM