The Abu Dhabi National Oil Company (Adnoc) is likely to be forced to invest as much as 50 per cent more than originally anticipated in new gas projects within the emirate as construction costs continue to rise, it has been predicted.

With domestic demand currently rising fast and demand for exports as strong as ever, the company is keen to invest in the development of sour gas resources at a number of sites, most notably its mega Shah field project.

While some $10 billion had originally been earmarked for the Shah project when plans were drawn up for it two years ago, industry insiders now expect the final cost to be around $15 billion, and possibly even more, due to recent shifts in the general economy.

One Adnoc source told Emirates Business: "Considering the steady increase in construction costs, rising insurance and engineering costs, and a sharp rise in fees by sub-contractors, the estimated investment for these projects are now much higher

"In my own estimates, they could now be higher by at least 50 per cent and in two to three years they could double. This means Abu Dhabi has to pump $15bn-20 billion into the Shah and Bab projects. And much more funds will also be required for other gas projects in the emirate, including Hail project, Gasco masterplan and other development plans, all of which will be completed in the next few years."