Abu Dhabi accelerates gas field restoration, aiming to restore 80% production capacity within the year

ADNOC Gas, the natural gas subsidiary of Abu Dhabi National Oil Company, disclosed plans to restore the Habshan gas processing complex, the world's largest, to 80% capacity by the end of 2026. The facility had previously suspended operations entirely due to damage caused by Iran's attack on the UAE.

On April 3 this year, debris from intercepted Iranian attacks fell within the Habshan complex, igniting two fires. ADNOC Gas stated at the time that the facility suffered significant damage; on April 8, another safety incident occurred at the base, after which it entered a complete shutdown for maintenance.

According to a filing submitted by ADNOC Gas to the Abu Dhabi Securities Exchange this week, the Habshan complex has completed emergency repairs, with capacity restored to 60%. The company outlined a clear repair timeline: recovering to 80% processing capacity by the end of 2026, and achieving full resumption of production across all lines by 2027.

Data shows that the Habshan complex comprises five plants and 14 natural gas processing production lines, with a daily processing capacity of 6.1 billion standard cubic feet. Although some production lines remain offline, the overall gas supply through the base's pipeline network has basically returned to normal.

Under the influence of turmoil in the Middle East geopolitical situation and rising regional uncertainty, ADNOC Gas faced operating pressure in the first quarter. The company's latest financial report shows a net profit of nearly $1.1 billion in the first quarter, a year-on-year decline of about 15%. Geopolitical conflicts disrupted regional energy commercial activities, and shipping in the Strait of Hormuz as well as international oil and gas trade were obstructed, becoming the core trigger for the weakening performance.

ADNOC Gas stated that it is currently coordinating with clients and partners one by one to arrange transactions and maximize contract fulfillment and supply guarantees. It also warned that if the obstruction of shipping in the Strait of Hormuz continues, it will continue to drag down its second-quarter net profit; assuming a gradual return to normalcy in maritime transport during the current quarter, the impact on performance could still be as high as $400 million to $600 million.

Looking ahead to the full year, the company expects its overall net income range for 2026 to be $3.5 billion — $4 billion; its medium-to-long-term planning clarifies that it will drive a 30% increase in natural gas processing capacity over the next four years and is optimistic about the growth in energy demand driven by the UAE's industrial expansion.

It is worth noting that the UAE, the world's seventh-largest oil producer, officially exited OPEC on May 1. Currently, OPEC and the OPEC+ alliance are facing multiple pressures such as shocks to the supply pattern and internal compliance differences; the UAE's exit at this time further increases variables in the industry landscape.

Regarding the geopolitical conflict, since the intensification of contradictions between Iran and the US/Israel on February 28, Iran has intensively launched strikes on energy infrastructure in many parts of the Middle East. Oil and gas facilities in the UAE, Saudi Arabia, Iraq, Bahrain, Qatar, and other countries have all suffered varying degrees of damage. Among them, the missile attack on Qatar directly paralyzed about 17% of its liquefied natural gas export capacity, and the security of the Middle East energy supply chain and the global oil and gas supply pattern continue to be under pressure.