ADNOC approves first large-scale unconventional gas project at Ruwais

Summary

• ADNOC took a final investment decision on the Diyab basin unconventional gas development in Ruwais.
• Output of 345 million standard cubic feet per day starts in 2029, running 25 years.
• The gas is earmarked for domestic demand, with capacity expandable to 1 billion cubic feet daily.

The latest

A final investment decision has cleared the Diyab basin unconventional gas development in Ruwais, ADNOC announced on Monday 2 November 2026 at the ADIPEC 2026 exhibition and conference. The field is expected to deliver 345 million standard cubic feet of raw gas per day from 2029 for 25 years, feeding the domestic market. ADNOC described it as its first large-scale venture into unconventional gas.

Details

• The volume: The project is expected to produce 345 million standard cubic feet of raw gas per day, dedicated to local market needs, ADNOC said. Production begins in 2029 and runs for 25 years, giving the UAE grid a supply line with a defined quarter-century horizon.
• Room to grow: ADNOC said capacity could later be raised to 1 billion standard cubic feet per day, nearly triple the initial rate. The company did not set a timetable or trigger for that expansion, nor specify the additional drilling or processing needed to reach the higher figure.
• The infrastructure: Gas will be processed on site and tied into the national gas network through newly built pipeline infrastructure, according to ADNOC. The statement did not identify the route, length or construction schedule of those pipelines.
• The executive line: Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC chief executive, said the Diyab basin in Ruwais is "ADNOC's first large-scale unconventional gas project," positioning the decision as an entry into a resource class the company has not developed at commercial scale before.
• The delivery model: ADNOC Onshore carried out the technical studies programme and field testing under a design, build and operate model, according to the announcement. That structure keeps engineering, construction and operation on a single delivery track rather than splitting them across separate contracting phases.
• What was not disclosed: The statement did not give the value of the investment, and named no implementation partners or contractors. No breakdown of capital spending, financing structure or expected unit cost of production accompanied the final investment decision.
• The reserve base: The UAE holds the world's seventh largest gas reserves, with 298 trillion standard cubic feet of conventional gas and 160 trillion standard cubic feet of unconventional resources, according to figures cited by ADNOC. The unconventional pool is more than half the size of the conventional one.
• The venue: The decision was announced during ADIPEC 2026 in Abu Dhabi, the gathering ADNOC uses to time major project milestones. Unconventional gas requires different extraction techniques from conventional fields, which is why the company flags this as a first of its kind for the group.

Background

Unconventional gas is trapped in tight rock formations and requires stimulation techniques to flow, unlike conventional reservoirs. The UAE's 160 trillion standard cubic feet of unconventional resources had not previously been developed at large scale, making Diyab a test of whether that category can be produced commercially.

Between the lines

Routing 345 million cubic feet per day to the domestic market frees conventional volumes already in the system for other uses, including export and state industry. The scale of that effect depends on the expansion option to 1 billion cubic feet per day, which ADNOC has flagged without committing to. With no investment figure or partners disclosed, the cost of producing unconventional gas remains the open variable.

What's next

Watch for the award of pipeline and processing contracts, the naming of implementation partners, disclosure of project cost, and drilling milestones ahead of the 2029 production start date set by ADNOC.

Source: Emirates News Agency (WAM)