The United Arab Emirates has approved a $6.2 billion investment to develop a major offshore natural gas project in Abu Dhabi as part of efforts to expand gas production and strengthen its position in the global liquefied natural gas (LNG) market.

State-owned Abu Dhabi National Oil Company (ADNOC) announced that it had taken the final investment decision on the Umm Shaif Gas Cap project in partnership with France’s TotalEnergies, Italy’s Eni, and China National Petroleum Corporation (CNPC).

According to the company, the project is expected to begin producing more than 600 million standard cubic feet of natural gas per day by 2030. It will also generate associated gas liquids, contributing to the country’s long-term energy supply.

ADNOC said the development forms part of its broader strategy to maximise the UAE’s natural gas resources while increasing production capacity to meet rising domestic and international demand.

The company’s Group Chief Executive Officer and the UAE’s Minister of Industry and Advanced Technology, Sultan Ahmed Al Jaber, said the investment would accelerate the country’s integrated gas development plans and support the expansion of its LNG business as demand for cleaner-burning fuels continues to grow globally.

The announcement comes at a time when Gulf energy producers are navigating supply challenges linked to heightened regional tensions. Recent attacks involving Iran and disruptions around the Strait of Hormuz, one of the world’s most important oil and gas shipping routes, have raised concerns over energy security and export flows.

In May, the UAE disclosed that the Habshan gas-processing complex in Abu Dhabi, which sustained damage during the Middle East conflict, would not resume full operations until next year, delaying the restoration of some processing capacity.