ADNOC Gas invests $3.6bn to boost gas processing
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ADNOC Gas invests $3.6bn to boost gas processing capabilities

ADNOC Gas invests $3.6bn to boost gas processing capabilities

The project seeks to increase ethane extraction from the company’s existing onshore facilities in the Habshan complex

Gulf Business
ADNOC Gas awards $3.6bn contract to boost gas processing

UAE’s ADNOC Gas has invested $3.6bn (Dhs13.1bn) to boost its gas processing capabilities as the company looks to expand its production capacity in the UAE.

The investment is aimed at providing sufficient energy to the country’s growing industrial sector while stimulating economic growth and diversification through the In-Country Value (ICV) generated by the contract.

The contract to expand ADNOC Gas’ gas processing infrastructure was awarded to the joint venture between National Petroleum Construction Company and Tecnicas Reunidas.

The scope of the contract includes the commissioning of new gas processing facilities which will enable an optimised supply to the Ruwais Industrial Complex.

The project seeks to increase ethane extraction from ADNOC Gas’s existing onshore facilities in the Habshan complex through the construction of new gas processing facilities.

It is also aimed at unlocking further value from existing feedstock and delivering it to Ruwais via a dedicated 120km natural gas liquids (NGL) pipeline.

ADNOC Gas said more than 70 per cent of the contract value will flow back into the UAE’s economy under the ICV programme, supporting local economic growth and diversification.

“This capital project represents ADNOC Gas’ latest investment in its gas processing infrastructure and underscores our commitment to responsibly meeting our customers’ current and future energy demand for natural gas and its feedstock,” said Ahmed Mohamed Alebri, CEO of ADNOC Gas.

ADNOC Gas said it continues to leverage opportunities arising from ADNOC Group’s integrated gas masterplan, which links every part of the gas value chain in the UAE, ensuring a sustainable and economic supply of natural gas to meet local and international demand.

ADNOC Gas’ investment strategy

Meanwhile, natural gas is an important transitional fuel with lower carbon emissions when burned compared to other fossil fuels. It also serves as an important raw material in industrial value chains.

ADNOC Gas continues to capitalise on growing global demand for natural gas, as the company continues to grow its export business.

The company awarded $1.34bn in contracts to Petrofac Emirates and a consortium led by the National Petroleum Construction Company and C.A.T International for the expansion of its natural gas pipeline network in July.

In July, the Abu Dhabi-listed firm signed a 14-year supply agreement with the Indian Oil Corporation (IOC) for the export of up to 1.2 million metric tonnes per annum of LNG per year.

The company also delivered the first-ever LNG cargo to be shipped to Germany from the Middle East in February. It also signed a three-year agreement with TotalEnergies in May for the export of LNG from 2023 to 2025, cementing the company’s position as a reliable global supplier of natural gas.

ADNOC Gas was established in December 2022, following the merger of ADNOC Group’s gas processing and LNG operations into one of the world and market’s leading consolidated businesses effective January 1, 2023.

The company’s half-year income plunged by 12 per cent year-on-year (YoY) to $2.3bn (Dhs8.4bn) from $2.6bn a year ago due to lower pricing. Revenues in the six months to June 30 also dropped by 20 per cent to $10.6bn, compared to pro forma adjusted revenue of $13.3bn for H1 2022, impacted by the pricing environment.

Read: ADNOC Gas agrees $7-9bn 14-year LNG deal with India

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