The contracts awarded are part of the UAE-based gas processing company’s plans to extend its existing pipeline network from nearly 3,200km to more than 3,500km under the sales gas pipeline network enhancement (ESTIDAMA) programme
ADNOC Gas aims to extend its existing pipeline network from nearly 3,200km to more than 3,500km. (Credit: ADNOC Gas)
ADNOC Gas has awarded contracts worth $1.34bn for the expansion of its natural gas pipeline network to Petrofac Emirates and the consortium between National Petroleum Construction and C.A.T International.
The UAE-based gas processing company plans to extend its existing pipeline network from nearly 3,200km to more than 3,500km under the sales gas pipeline network enhancement (ESTIDAMA) programme. This includes the construction of a new natural gas pipeline.
According to ADNOC Gas, the new pipeline will facilitate the transportation of increased volumes of natural gas to customers in the Northern emirates of the UAE.
The ADNOC subsidiary expects the pipeline extension to propel additional growth for the company in its mission to provide sustainable gas supplies in the UAE. This is in support of the strategy of the company to boost its market share and improve its customer base.
ADNOC Gas CEO Ahmed Mohamed Alebri said: “Our strategic network expansion will bring the advantages of lower-cost, sustainable and cleaner gas to more locations across the UAE by enhancing industrial access to natural gas, a cost-competitive and lower-carbon intensive fuel.
“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.”
The ESTIDAMA programme is made up of various packages. The first of these was awarded in 2021 to execute early modification works on existing pipelines, which was completed this year.
The second and third packages have been awarded now. These involve the installation of new pipelines and a gas compression plant in Habshan that will help supply critical feed gas to major customers across the UAE, said ADNOC Gas.
Petrofac Emirates has been awarded a $700m engineering, procurement, and construction award for a new gas compressor plant at the Habshan Complex.
The new plant will underpin ADNOC to significantly boost gas output from the Habshan Complex, located west of Abu Dhabi. It will comprise three gas compressor trains, related utilities, and power systems.
ADNOC has developed an integrated gas masterplan to link all parts of the gas value chain in the UAE to enable a sustainable and economical supply of natural gas to fulfill domestic and international demand. The plan features innovative approaches and technologies to ramp up recovery of gas from existing fields as well as developing resources that are yet to be exploited.