The Adnoc Group subsidiary recently announced that it had achieved FID for phases 2 and 3 of its Rich Gas Development and awarded the EPC contracts to China-based Wison Engineering and Italy’s Tecnimont, respectively
China-based Wison Engineering and Italian contractor Tecnimont have announced that they have won engineering, procurement and construction (EPC) contracts from Adnoc Gas for the second and third phases of the Rich Gas Development (RGD) programme in Abu Dhabi, respectively.
Adnoc Gas, the gas processing subsidiary of Abu Dhabi National Oil Company (Adnoc Group), recently announced that it had reached a final investment decision (FID) on RGD phases 2 and 3 earlier this year, with a total project investment of $8.2bn. The FID for the two projects forms part of its previously committed capital expenditure (capex) budget of $28bn for the 2026-30 period.
The second and third phases of the RGD programme relate to constructing a new gas processing train at the Habshan complex and a natural gas liquids (NGL) fractionation train at the Ruwais gas processing facility, respectively.
MEED reported in March that Adnoc Gas had selected the main EPC contractors for both the Habshan 7 gas processing train and the Ruwais NGL Train 5 projects.
Adnoc Gas officially announced the award of the EPC contracts as part of its Q2 2026 financial results, saying it had awarded Wison Engineering a $3.9bn contract for RGD phase 2, while Tecnimont was selected for the $4.3bn phase 3 contract.
Wison Engineering said the EPC contract for RGD phase 2 is the largest in its history. The total value of the contract is $4.04bn, the Hong Kong-listed company said, adding that the scope of work includes gas pipelines; separation and condensate stabilisation units; acid gas removal units; and the core deep NGL recovery units – critical process facilities in addition to a 220kV switch station.
Phase 2 will add a new natural gas processing train at the Habshan facility, “expanding Adnoc Gas’ natural gas processing capacity, enhancing operational flexibility, and supporting the UAE’s expanding downstream and petrochemical sectors”, Adnoc Gas said.
Tecnimont’s parent, Maire, said its scope of work on the RGD phase 3 project includes EPC activities for the fifth NGL fractionation unit, which will separate the various hydrocarbon components, together with treatment and sweetening systems designed to remove impurities and ensure product quality.
The scope also includes a regeneration gas treatment unit, a propane refrigeration system, ancillary systems and storage facilities. Once completed in 2030, the plant will have an output capacity of 23,000 tonnes a day (t/d), or about 8 million tonnes a year, Milan-headquartered Maire said.
Phase 3 will add a new NGL fractionation train at Ruwais, “increasing the recovery of higher-value liquids from rich natural gas for export [and] strengthening Adnoc Gas’ global customer portfolio”, Adnoc Gas said in a statement on 10 August.
Adnoc Gas also reiterated its $5bn capex for the first phase of the RGD scheme, which is under construction. The company awarded $5bn of engineering, procurement and construction management (EPCM) contracts in three tranches for phase 1 of the RGD in June last year, marking the company’s largest-ever capital investment.
Across all three phases, Adnoc Gas has made a total investment of $13.2bn in the RGD programme.
“We continued investing through the cycle and advancing megaprojects that will define the next phase of Adnoc Gas’ growth, expanding our processing capacity and product volumes,” the company’s CEO, Fatema Al-Nuaimi, said.
“Together with Ruwais LNG and our wider portfolio of strategic projects, we are executing one of the industry’s most ambitious gas growth programmes,” she said.
Al-Nuaimi added: “These investments support our upgraded target of 60% [earnings before interest, taxes, depreciation and amortisation] Ebitda growth by 2030, which was previously 40%. Delivering that ambition will see us invest approximately $28bn between 2026 and 2030.
“We’re able to make these investments because we’re in a strong financial position. What matters here is this: we are reaffirming our dividend policy; we fund this growth programme and we deliver returns to shareholders. That is not an either/or,” she said.
Second-quarter financial results
Adnoc Gas detailed its capex plan at a media roundtable to discuss its financial results for the second quarter of the year (Q2 2026).
The company achieved net income of $665m in Q2 2026 – above the upper end of the $400m-$600m guidance range provided in the first quarter – “reflecting strong operational performance in a challenging operating environment. This was supported by resilient margins in the domestic gas business”.
Supported by its cash flow from operations, the company’s board has approved a quarterly dividend of $940m, payable in September, in line with its commitment to deliver annual dividend growth of 5% through 2030.
Adnoc Gas remains the largest dividend payer on the Abu Dhabi Securities Exchange (ADX), where it listed in March 2023.
Additionally, the company said: “Continued disruption to maritime movements through the Strait of Hormuz affected product liftings during the second quarter. Through proactive inventory, logistics and supply-chain management, Adnoc Gas worked closely with customers and partners to mitigate the impact of these disruptions, manage temporary constraints and fulfil commitments wherever possible.”
For Q3 2026, Adnoc Gas said it expects profit in the range of $600m to $800m, “based on the assumption that maritime routes through the Strait of Hormuz continue to be disrupted”.
