ADNOC Gas awards natural gas pipeline contracts worth $1.34bn

ADNOC Gas awarded $1.34bn (Dhs4.9bn) 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.

The new pipeline will extend its existing pipeline network from approximately 3,200 km to over 3,500km, enabling the transportation of higher volumes of natural gas to customers in the UAE’s Northern emirates.

ADNOC Gas expects the pipeline extension to drive further growth as the company continues to supply sustainable gas supplies in the UAE, as part of its strategy to increase its market share and enhance its customer base.

“The expanded pipeline will drive further growth for ADNOC Gas and our shareholders as we deliver on our mandate to achieve gas self-sufficiency for the UAE,” Ahmed Mohamed Alebri, CEO of ADNOC Gas said, adding that the network expansion will bring the advantages of lower-cost, sustainable and cleaner gas to more locations across the UAE.

ADNOC Gas said more than 70 per cent of the contracts’ value is expected to flow back into the UAE economy, as part of ADNOC Group’s In-Country Value (ICV) programme. The ICV programme seeks to enhance the country’s local value chain by encouraging local manufacturing and supporting local industries.

The network expansion is part of ADNOC Gas’ sales gas pipeline network enhancement (ESTIDAMA) programme. The programme comprises several packages, with the first one awarded in 2021 for early modification works on existing pipelines and completed earlier this year.

The second and third packages, which are being awarded now, include the construction of new pipelines and a gas compression plant in Habshan that will help deliver essential feed gas to key customers across the Emirates.

ADNOC Gas expands

Meanwhile, London-listed oilfield services firm Petrofac said it was a $700m contract by ADNOC to undertake work at the state-owned energy firm’s Habshan Complex. The contract, which was awarded to Petrofac Emirates, involves the engineering, procurement and construction of a new gas compressor plant for ADNOC Gas.

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.

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.

The company continues to capitalise on growing global demand for natural gas, as it continues to grow its export business. It 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.

Read: ADNOC awards $700m contract for gas compressor plant