ADNOC Secures Up to $11 Billion Financing for Hail and Ghasha Gas Project

Abu Dhabi National Oil Company (ADNOC) has signed a landmark structured financing transaction of up to $11 billion to support the development of the Hail and Ghasha offshore gas project, reinforcing the company’s push to scale gas output while deploying innovative funding models.

The transaction, announced on December 18, involves ADNOC alongside project partners Eni and PTT Exploration and Production (PTTEP). It is designed to monetize future gas production from the project’s midstream segment while allowing ADNOC and its partners to retain full strategic and operational control of the assets.

Hail and Ghasha forms part of the wider Ghasha Concession offshore Abu Dhabi, which is expected to deliver around 1.8 billion standard cubic feet per day of gas at plateau. The project is central to ADNOC’s gas growth strategy and the UAE’s ambition to strengthen domestic gas supply while reducing reliance on imports.

The financing is structured on a non-recourse basis, a relatively rare approach for an energy project of this scale and complexity. By ring-fencing the midstream processing facilities, the structure enables low-cost funding backed by long-term contracted gas flows, rather than ADNOC’s corporate balance sheet.

According to ADNOC, the transaction attracted participation from more than 20 global and regional banks, highlighting strong lender confidence in the project’s commercial fundamentals and ADNOC’s delivery track record. The banking group includes major Middle Eastern, Asian, and international institutions.

Beyond its scale, Hail and Ghasha is positioned as a flagship decarbonization project. ADNOC has previously described it as the world’s first offshore gas development designed to operate with net-zero emissions, targeting the capture of around 1.5 million tonnes of CO? annually through carbon capture technologies. The project will also leverage ADNOC’s in-house artificial intelligence and advanced digital systems via its Thamama Center of Excellence.

The financing builds on a series of large infrastructure and midstream transactions completed by ADNOC over the past decade. These include multi-billion-dollar oil and gas pipeline deals with global infrastructure investors, as well as build-own-operate-transfer projects aimed at decarbonizing offshore operations and improving water efficiency onshore.

For investors and the wider energy sector, the Hail and Ghasha transaction offers a template for funding capital-intensive greenfield developments at a time when balance sheet discipline and capital efficiency are increasingly critical. ADNOC has indicated that the structure could be replicated across future large-scale projects.

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As global demand for lower-carbon gas remains resilient, the financing strengthens ADNOC’s ability to advance one of the Middle East’s most strategically significant gas developments while maintaining flexibility in capital allocation.

By Charles Kennedy for Oilprice.com

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