ADNOC awards $700m contract for gas compressor plant

UAE’s ADNOC Group has awarded London-listed oilfield services firm Petrofac a $700m contract to undertake work at the state-owned energy firm’s Habshan Complex.

The contract awarded to Petrofac Emirates involves the engineering, procurement and construction of a new gas compressor plant for ADNOC Gas Processing, Petrofac said in a statement. The new plant comprises three gas compressor trains, associated utilities and power systems and it is expected to substantially increase ADNOC’s gas output from the Habshan Complex.

“Petrofac has a long and strong track record supporting ADNOC in the UAE, rooted in our steadfast commitment to maximising local delivery, investing in the local supply chain, and developing local teams,” said Elie Lahoud, chief operating officer of Petrofac Engineering & Construction.

“This focus on In-Country Value will once again underpin our approach to delivery for ADNOC on the strategically significant Habshan Complex.”

We just published the following press release ?: ADNOC awards Petrofac US$700 million EPC projecthttps://t.co/W6Tjc6YhOq

— Petrofac (@PetrofacGroup) June 30, 2023

ADNOC Gas has a production capacity of 10 billion cubic feet a day across eight onshore and offshore sites. The company was created following the merger of ADNOC’s gas processing and LNG operations in November 2022. It has a pipeline network of more than 3,250km.

ADNOC Gas expands portfolio

Meanwhile, ADNOC Gas continues to capitalise on growing global demand for natural gas, as it continues to grow its export business. The company delivered the first-ever LNG cargo to be shipped to Germany from the Middle East in February.

ADNOC Gas signed a three-year agreement with TotalEnergies in May for the export of LNG from 2023 to 2025, cementing its position as a reliable global supplier of natural gas.

The Abu Dhabi-based firm has made significant progress on its five-year $14bn strategic and growth project portfolio, encompassing a range of projects integral to elevating the efficiency of operations and production output.

The key projects include further maximising ethane recovery and monetisation across operations, extending the gas pipeline network by more than 500km to better connect the Northern Emirates and constructing an additional greenfield gas processing facility.

Earlier in May, ADNOC said its new low-carbon LNG growth project will move to the Al Ruwais Industrial City in Abu Dhabi instead of Fujairah. The new location offers significant synergies and existing infrastructure that will be leveraged to deliver project efficiencies and unlock additional value for the group.