ADNOC Secures $11 Billion Pre-Export Financing for Zero-Emissions Gas Mega-Project

Abu Dhabi National Oil Company (ADNOC) Secures $11 Billion Financing for Hail and Ghasha Gas Development

Abu Dhabi National Oil Company (ADNOC) has secured up to $11 billion in financing for its Hail and Ghasha gas development, a major milestone in the UAE's energy strategy according to reports. The funding, provided by over 20 banks and financial institutions, will support the construction and operation of midstream processing facilities for the project as reported. ADNOC has structured the financing in a way that allows it to monetize future gas production ahead of first output, which is expected by the end of the decade based on projections.

The project is part of the larger Ghasha Concession, located offshore in Abu Dhabi, and is expected to produce 1.8 billion standard cubic feet of gas per day according to ADNOC. ADNOC has partnered with Italy's Eni SpA and Thailand's PTT Exploration & Production Pcl for the development, which is designed to operate with net-zero emissions as detailed in reports. The financing model used for the project is seen as a replicable template for large-scale capital-intensive developments in the energy sector according to industry analysis.

The Hail and Ghasha project is a strategic priority for ADNOC as the company expands its gas production capacity and moves toward energy diversification. The financing was arranged using a non-recourse structured model, shielding banks from construction risk and leveraging the company's long-term offtaker capabilities. The funding will also support ADNOC's broader capital-expenditure plans, including a $150 billion five-year investment budget aimed at boosting crude output and advancing midstream and downstream projects.

A New Model for Energy Financing

The financing structure for Hail and Ghasha represents a shift in how large energy projects are funded. By using a pre-export finance model, ADNOC has unlocked immediate capital while retaining control over its assets and operations. The deal is anchored by future gas throughput, providing stable long-term cash flows to lenders while reducing the need for upfront equity. This approach is expected to be replicated in future projects, particularly as balance sheet discipline and capital efficiency become more critical in a competitive energy market.

The transaction includes participation from both global and regional banks, including Abu Dhabi Commercial Bank, Agricultural Bank of China, and Standard Chartered. These institutions were drawn by the project's long-term profitability and the robust contractual protections offered by ADNOC and its partners. The deal also benefited from the UAE's strong regulatory framework and the project's alignment with the country's net-zero goals.

Strategic Implications for ADNOC and the UAE

The Hail and Ghasha project supports ADNOC's goal of becoming a global energy leader and enhancing gas self-sufficiency in the UAE. Gas production is a key pillar of the company's strategy as it diversifies away from crude and into cleaner energy sources. The project is also expected to strengthen ADNOC's midstream infrastructure, including its state-of-the-art Thamama Center of Excellence and the Project Lightning subsea transmission cable project.

The deal also reflects ADNOC's growing international partnerships and its ability to attract financing in a cautious global market. With geopolitical tensions and regulatory challenges complicating energy investments, the project's non-recourse nature and stable returns have been particularly appealing to lenders. The success of the financing could pave the way for more large-scale investments in the Middle East, particularly in gas and renewable energy projects.