ADNOC Gas, SNOC assess UAE gas infrastructure projects

ADNOC Gas supplies about 60% of the United Arab Emirates’ sales-gas requirements, roughly three in five on the domestic market. Its new collaboration with Sharjah National Oil Corporation (SNOC) concerns infrastructure that carries real weight.

What has actually been agreed?

ADNOC Gas, a subsidiary of ADNOC, and SNOC signed a strategic collaboration agreement to explore potential projects that could advance integration of the UAE’s gas infrastructure.

The announcement disclosed no final investment decision, committed capital cost, processing or storage capacity, permit, or startup date. It creates an assessment framework. Each workstream remains an appraisal-stage option until the companies select a scheme and commit capital.

The scope covers gas storage, processing, long-term supply arrangements, and trading of liquefied petroleum gas (LPG) and downstream products. According to ADNOC Gas, the collaboration should strengthen supply security and resilience by identifying projects that expand the country’s energy capabilities and infrastructure flexibility for current and future demand.

The project scope remains at gas-system level. No producing field, basin, refinery, or terminal was identified in the announcement.

SNOC CEO Khamis Al Mazrouei described the objective as a stronger, more resilient and integrated UAE gas network. He said: “SNOC’s long-standing infrastructure, built and refined over decades of operation in Sharjah, complements ADNOC Gas’s growth programme, creating the flexibility to store, process and deliver gas more efficiently.”

For Sharjah, Al Mazrouei expects greater supply security, new downstream and LPG opportunities, and a stronger role in the UAE’s energy market. For now, this is an assessment framework, not a funded project list.

What does the partnership add?

ADNOC Gas operates across the gas value chain, including processing, fractionation, and domestic and international product sales. It serves customers in more than 20 countries, giving the proposed collaboration an established operating base on both sides.

ADNOC Gas CEO Fatema Al Nuaimi said: “By working with SNOC, we can create greater flexibility in how gas is moved, processed and stored, reinforcing security of supply while supporting the UAE’s continued industrial growth.”

Al Nuaimi also said the agreement brings together complementary infrastructure and capabilities to unlock more value across the UAE’s gas network. The stated benefit is coordinated flexibility rather than a stand-alone new facility.

System coordination, rather than announced additions to capacity, is the near-term proposition.

Which programmes already have momentum?

ADNOC Gas is working on what it calls one of the world’s largest integrated gas growth programmes. Recent investment includes the Rich Gas Development (RGD), a $13.2 billion project intended to expand processing capacity and increase natural gas availability for domestic use.

RGD has three phases. On a simple division, the stated value equals $4.4 billion per phase, although the announcement provides no individual phase budgets or timetable.

The company is also pursuing the Estidama programme, focused on modernising and optimising its pipeline network to meet growing domestic needs. RGD and Estidama sit within ADNOC Gas’s current growth activity.

The SNOC agreement does not attach a project, capital sum, capacity, or startup date to either programme. ADNOC Gas has investment underway elsewhere, but none has been assigned to the proposed SNOC work.

What does the LNG contract add?

In January 2026, ADNOC Gas agreed to supply liquefied natural gas to India-based Hindustan Petroleum Corporation (HPCL) for 10 years. The contract is valued at $2.5 billion to $3 billion.

On a simple straight-line basis, that equals $250 million to $300 million a year. The announcement provides no annual delivery or payment schedule, so the average offers scale rather than a contractual payment profile.

The HPCL agreement demonstrates long-term contracting reach. The SNOC framework concerns potential gas-system projects and carries no equivalent value, volume, or term.

The LNG award demonstrates long-term contracting capability, not a new SNOC commitment.

What should readers watch?

Watch for the first project to move from assessment to sanction. The useful disclosures will be:

• Final investment decision and committed capital cost
• Storage or processing capacity
• Long-term supply and LPG trading terms
• Regulatory permits, construction timetable, and startup date

The framework identifies options, not committed capacity. The hard part begins with project approval.

Until those details arrive, the agreement remains a framework rather than a construction schedule. The watch item is a funded project with an owner, a permit, and a startup date.