ADNOC Gas has awarded a contract worth AED13.1bn ($3.6bn) to a joint venture (JV) between National Petroleum Construction (NPCC) and Tecnicas Reunidas to expand its gas processing infrastructure in the UAE.

Tecnicas Reunidas is a Spain-based engineering, procurement, and construction (EPC) company, while National Petroleum Construction is a UAE-based EPC solutions provider.

Under the contract, the joint venture will be responsible for commissioning new gas processing facilities which will be designed to facilitate a streamlined supply to the Ruwais Industrial Complex in Ar-Ruwais.

The contract is part of ADNOC Gas’ “Maximizing Ethane Recovery and Monetization (MERAM)” project.

ADNOC Gas has indicated that more than 70% of the contract’s value will circulate within the UAE’s economy through the implementation of ADNOC’s In-Country Value (ICV) initiative. This will bolster local economic expansion and diversification efforts, said the integrated gas processing company.

The MERAM project has been set two objectives.

One of the goals is to boost the extraction of ethane by 35-40% from the existing onshore facilities of ADNOC Gas in the Habshan complex. For this, the company will build new gas processing facilities.

The second objective of the MERAM project is to draw additional value from existing feedstock and supply it to the Ruwais Industrial Complex using an exclusive 120km long natural gas liquids (NGL) pipeline.

ADNOC Gas CEO Ahmed Mohamed Alebri said: “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.

“The expansion of our gas processing infrastructure will also provide additional energy to the country’s growing industrial section, while stimulating economic growth and diversification through the significant ICV generated by the contract.”

Last month, ADNOC Gas issued contracts worth $1.34bn for the expansion of its natural gas pipeline network to Petrofac Emirates and a consortium of National Petroleum Construction and C.A.T International.