On July 21 (local time), according to the announcement of the Abu Dhabi National Oil Corporation (ADNOC), Abu Dhabi has approved the Umm Shaif offshore gas field development project worth 6.2 billion USD, in an effort to increase natural gas production and expand exports of liquefied natural gas (LNG), as tensions in the Middle East continue to put pressure on the global energy market.
The project implemented by ADNOC will develop the Umm Shaif field - one of the oldest offshore oil and gas fields of the United Arab Emirates (UAE).
ADNOC said the project will add more than 600 million cubic feet of natural gas per day along with companion gas products from 2030. This volume is equivalent to nearly 10% of the UAE's current daily gas consumption needs.
The project is being implemented with international partners including TotalEnergies (France), Eni (Italy) and China National Petroleum Corporation (CNPC).
According to ADNOC, the new investment not only helps the UAE improve domestic energy security but also strengthens its ambition to become one of the world's largest LNG export centers.
This move comes as the energy transport route through the Strait of Hormuz - which transits about 20% of global LNG - continues to face the risk of disruption due to conflict in the Middle East.
These developments have caused many gas importing countries to seek more stable sources of supply outside the area directly affected by the war.
The UAE currently owns the 7th largest gas reserves in the world, while maintaining oil production of over 4 million barrels/day.
After leaving OPEC in early 2026, the UAE is no longer subject to exploitation quotas and aims to increase oil production to more than 5 million barrels/day in the coming year.
CEO of ADNOC Sultan Ahmed Al Jaber said the group is accelerating its gas development strategy to maximize UAE resources, while expanding its LNG platform in the context of continued global natural gas demand.
The Umm Shaif oil field plays a special role in the UAE energy industry as it is home to Abu Dhabi's first offshore oil well and once supplied oil for the first export shipment of the emirate in 1962.
ADNOC aims to increase LNG capacity to 47 million tons/year by 2035, through expanding exploitation, trading and export.
This momentum becomes even more urgent as about 1/3 of the UAE's domestic gas demand is still dependent on supplies from Qatar through pipelines, with the contract expected to expire in 2032.
