The bidding process for a major engineering, procurement, and construction (EPC) contract, valued between $3.5 billion and $4 billion, for a new gas processing train at the Habshan facility in Abu Dhabi has been narrowed to three contractors: the UK's Petrofac, India's Larsen & Toubro (L&T), and China's Wison Engineering. Revised commercial offers were submitted in February following pricing guidance from the operator, Adnoc Gas, with initial offers having been significantly higher than the target range. A final contractor selection and a final investment decision (FID) for the project are anticipated before the end of the current financial quarter.

Project Context and Strategic Importance

The Habshan Train 7 expansion is the second phase of the Rich Gas Development (RGD) project, which is designed to process additional associated gas from Adnoc's P5 programme. The P5 programme aims to increase Abu Dhabi's oil production capacity to 5 million barrels per day by 2027. The new train will be situated next to the existing Habshan 5 plant and will include extensive onshore facilities such as a new pipeline, separation and condensate stabilizer units, acid gas removal and deep gas recovery units, and water treatment packages. This expansion is a critical component of Adnoc Gas's plan to increase its overall processing capacity by 30% by 2029.

Broader Development Programme

Adnoc Gas is progressing on multiple fronts within the RGD project. Alongside the Habshan Train 7, the company is nearing a contract award for the fifth expansion phase of its Ruwais natural gas liquids (NGL) facility, which constitutes the third phase of the RGD project. This NGL train will have a production capacity of 27,000 tonnes per day. Collectively, the Habshan Train 7 and Ruwais NGL expansion projects are estimated to be worth up to $8 billion. Final investment decisions for both the second and third phases of the RGD project are anticipated in the first quarter of 2026.

Company Performance

Adnoc Gas reported strong financial results, with a record net income of $5.2 billion for the previous year, a 3% increase from the year prior. The company described this performance as demonstrating structurally resilient earnings and an ability to perform consistently throughout the commodity cycle. This financial strength supports its concurrent strategy of investing in significant growth projects like the RGD expansion.