Adnoc unit awards $1.3bn gas pipeline expansion contracts

Adnoc Gas, a top-class integrated gas processing company, has awarded $1.34 billion in contracts to Petrofac Emirates and a consortium of National Petroleum Construction Company and CAT International for the expansion of its natural gas pipeline network.

A unit of Abu Dhabi National Oil Company (Adnoc), the company said the work is being implemented under the sales gas pipeline network enhancement (Estidama) programme.

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

This strategic pipeline extension will drive further growth for Adnoc Gas as it continues to supply sustainable gas supplies in the UAE in support of the company’s strategy to increase its market share and enhance its customer base, he stated.

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," he noted.

As part of Adnoc’s highly successful In-Country Value (ICV) programme, which aims to enhance the UAE’s local value chain by encouraging local manufacturing and supporting local industries, over 70% of the contracts’ value is expected to flow back into the UAE economy.

The programme comprises several packages, with the first one awarded in 2021 for early modification works on existing pipelines and successfully completed in 2023.

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’s integrated gas masterplan connects all parts of the UAE’s gas value chain, ensuring a sustainable and economical supply of natural gas to meet local and international demand, stated Alebri.

The plan includes innovative approaches and technologies to increase gas recovery from existing fields and develop untapped resources, he added.

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