Abu Dhabi Gas Industries Limited (GASCO) has awarded the contracts for engineering, procurement, construction and commissioning (EPC) works for the Integrated Gas Development project on lump sum turn key basis. These contracts cover Habshan 5 process plant, Habshan 5 Utilities&Offsites (U&O), Ruwais fourth natural gas liquids (NGL) train and Ruwais storage tanks. The projects are scheduled for completion by third quarter of 2013.

The contract was awarded as follows:

Habshan 5 Process Plant: To a joint venture of JGC Corporation and Maire Tecnimont SpA for a total agreement price of about $4 billion (AED17 billion) and $700 million (AED 300 million)

Habshan 5 U&O: To Hyundai Heavy Industries Co., Ltd. for a total agreement price of about $1 billion (AED6 billion) and $700 million (AED200 million)

Ruwais Fourth NGL Train: To a joint venture of Petrofac Limited and GS Engineering & Construction Corporation for a total agreement price of about $2 billion and $100 million (AED8 billion)

Ruwais Storage Tanks: To CBI for a total agreement $5.033 billion (AED1.9 billion)

The letters of award were issued to the companies on July 15, 2009.

The initial phase of the projects execution will commence from the respective Contractors’ Home Offices and will later on move to the sites at Habshan and Ruwais for construction activities.

All the four packages are mega projects in their own complexity and magnitude.

The Integrated Gas Development project will be built at a new location in Habshan titled Habshan 5. There will be four gas processing trains with total processing capacity of 2,000 million standard cubic feet per day (MMSCFD). Of this, 1,000 MMSCFD of gas will be transported from offshore field Umm Shaif via Das Island to enable ADMA-OPCO to meet their planned increase in oil production. The remaining 1,000 MMSCFD of gas will comprise of a mix of associated gas as a result of increase in oil production by Abu Dhabi Company for Onshore Operations (ADCO) from 1.4 to 1.8 MM Barrels/day and non associated gases of high sourness from Habshan gas fields. The Habshan 5 complex will also build four new sulphur recovery units with recovery efficiency upto 99.9%. It will reduce emission of toxic gases considerably meeting the environment standards of The Abu Dhabi National Oil Company (ADNOC).

After commissioning of these facilities, the new complex in Habshan 5 will produce 900 MMSCFD of sales gas, 12,000 Tons/Day of NGL and 5,000 Tons/Day of liquid Sulphur.

While the products (Propane, Butane, Paraffinic Naphtha and Sulphur) would be exported, ethane shall be transported to the nearby petrochemical complex as feedstock.

GASCO will direct its contractors to maximize in these projects the local contents in terms of materials, equipment and services.

These projects will deploy large number of workforce of labor, technicians and supervisors to the tune of about 30,000 at the peak of construction activities. Of these, about 20,000 persons will be in Habshan 5 while about 10,000 will be in Ruwais.