Natural gas represents over half of current investments by Abu Dhabi National Oil Company (Adnoc) in developing its oil, gas and downstream industries, according to a senior executive.

Adnoc and its subsidiaries have about $25bn-worth of engineering, procurement and construction (EPC) contracts for gas projects currently in the execution stage, compared with a total of $40bn across its operations.

“Natural gas is in a period of explosive growth in the GCC countries,” says Mohammed Sahoo al-Suwaidi, chief executive officer (CEO) of Adnoc subsidiary, Abu Dhabi Gas Industries (Gasco).

“[The UAE’s] aim is to meet rising domestic gas demand, which is rising 15 per cent annually and to open up opportunities for international oil companies to work with us to develop our capacity,” he adds.

Much of the investment has gone into two huge projects. Gasco’s $10bn integrated gas development (IGD) scheme will transfer 1 billion cubic feet a day (cf/d) of high pressure gas from the offshore Umm Shaif field to new processing facilities in Habshan and Ruwais.

Meanwhile, the Shah sour gas project, also valued at $10bn, will add 500m cf/d to the country’s sweet gas output.

Al-Suwaidi says that Adnoc would soon be launching efforts to further develop onshore reserves and would add new concessions for offshore gas reserves.

“The UAE must continue to increase capacity to satisfy the needs created by domestic development, particularly power demand and feedstock for petrochemicals industries,” says Al-Suwaidi.

“Because newer gas fields come from tighter reserves and contain greater amounts of sour gas they are more complex to develop, growth in this area will create a greater opportunity for business activity in the region,” he added.

Gasco is preparing to award a $450 EPC deal for a pipeline connecting its Habshan gas production hub with energy-intensive industries in Taweelah, Abu Dhabi.