ADNOC awards Dhs3.16bn contract for gas project

Abu Dhabi National Oil Company (ADNOC on Wednesday awarded an engineering procurement and construction contract worth Dhs3.16bn ($860m) for the second phase of its Integrated Gas Development Expansion (IGD-E) project

A consortium of Spain’s Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company will undertake the work over 54 months.

The expansion is expected to add 245 million cubic feet per day of associated gas to the 1.4bn already sent from Das Island to ADNOC’s gas processing facilities in Habshan.

“This agreement is a significant milestone as we work across the gas value chain to further integrate our offshore and onshore gas systems,” said ADNOC LNG CEO Fatema Mohamed Al Nuaimi.

“It will enable us to deliver greater efficiency and performance, maximise the value of our gas assets and pursue our strategic objective to ensure a sustainable and economic gas supply that meets Abu Dhabi’s growing energy needs.”

The contract includes construction of new gas facilities on Das Island and other engineering, equipment, material supply and construction work.

Tecnicas will carry out the engineering and procurement and Target the construction and commissioning woks on Das Island.

The first phase of the IGD-E project, which included a 117km offshore segment and 114km onshore segment, began in 2015 and was completed last month.

It boosted ADNOC”s offshore gas processing capacity by 400 million cubic feet per day.

ADNOC said more than half of the phase two contract would flow into the local economy.

The company has announced plans to spend more than Dhs400bn ($109bn) in the next five years to boost gas output and international downstream activities.

Read: ADNOC to spend over $109bn to boost gas, downstream