Adnoc says Habshan gas plant repairs to run into 2027

The UAE’s biggest gas plant will not be fully repaired until mid-2027 after being hit by two Iranian attacks last month.

Abu Dhabi National Oil Company subsidiary Adnoc Gas said the Habshan gas processing facility was running at 60 per cent capacity and will reach 80 per cent by the end of this year, in a statement to the Abu Dhabi Securities Exchange on Tuesday.

Habshan was damaged twice in early April as Iran targeted US allies in the Gulf.

Energy major Shell announced last week that it would take about a year to repair damage to “Train 2” processing line at its Pearl gas-to-liquid facility in Qatar, which was damaged in March.

The International Energy Agency has estimated that 84 energy facilities across Gulf countries were damaged during the conflict, with 34 suffering “serious or very serious” damage. The Paris-based agency has warned it could take around two years for the region to return to pre-conflict production levels.

It is expected to cost billions of dollars to repair oil and gas sites that were hit by drones and missiles, which targeted facilities in all six countries of the GCC. These include the Sitra oil refinery in Bahrain, the Mina Abdullah refinery in Kuwait and the Shah gas field in the UAE.

Energy companies are also hamstrung by the effective closure of the Strait of Hormuz, which is limiting exports. Saudi Aramco’s chief executive Amin H Nasser said on Monday that the global oil market would not return to normal until next year, even if the Strait reopened within weeks.

Adnoc Gas said on Tuesday that its revenue fell by almost a fifth in the first quarter to $5 billion due to the bottleneck in the vital waterway.

The ongoing closure is expected to affect Adnoc Gas’s second-quarter net income, with projections indicating a range between $400 million and $600 million.

“This quarter was shaped by exceptional external disruption, but our priorities were clear: protect our people and assets, and maintain safe domestic supply,” CEO Fatema Al Nuaimi said.

Net income fell to $1.1 billion between January and March. This was a 15 percent drop on the same quarter of last year and by 8 percent compared with the last three months of 2025.

The company said it would still commit to its dividend despite the disruption and approved a $941 million payout to investors, which will be paid in June.

Further reading:

• Oil and gas facilities targeted in UAE, Bahrain and Kuwait
• Adnoc Gas 2025 dividend payout reaches $3.6bn
• Major economies turn to coal with LNG supply constrained

Last week, Adnoc Gas’s parent company unveiled plans to award AED200 billion ($55 billion) of contracts between 2026 and 2028 as part of a major expansion drive across its businesses, including oil, gas, chemicals and industrial infrastructure.

It came days after the UAE said it would leave the Organization of the Petroleum Exporting Countries and Opec+ after almost 60 years. Exiting the group will allow the UAE to increase production and exports after years of coordinated cuts with other members, which was intended to raise oil prices.

Shares in Adnoc Gas fell 3 percent to AED3.28 on Tuesday on the ADX. The stock has fallen 7.6 percent in the year to date.