ADNOC Gas Awards $1.34 Billion in Contracts for New Natural Gas Pipeline

ADNOC Gas, the world-class integrated gas processing company, on Monday announced that it has awarded contracts valued $1.34 billion to Petrofac Emirates LLC and a consortium between National Petroleum Construction Co. and CAT International Ltd. for laying new natural gas pipeline to the Northern Emirates.

The proposed new pipeline will enhance ADNOC Gas’ network from 3,260 km to over 3,500 km and enable the transportation of higher volumes of natural gas to customers in the Northern Emirates.

The existing network is a vital component of the nation’s core energy infrastructure – acting as a gas super-highway for the UAE – ensuring uninterrupted gas supply 24 hours a day, 365 days a year for power generation and water desalination, and direct to industrial customers that lie at the heart of the UAE’s economic growth story.

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.

Supplies Cost-Efficient Gas

Ahmed Mohamed Alebri, Chief Executive Officer of ADNOC Gas, said that their 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 added.

As part of ADNOC’s highly successful In-Country Value (ICV) program, 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 ESTIDAMA program comprises of 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.

Connecting Entire UAE

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

The Taweelah Gas Compression Plant was commissioned in 2018 to ensure uninterrupted gas supplies to major Abu Dhabi industries and the Northern Emirates, and to support future growth. The project was completed under an extremely ambitious schedule of 16 months and without a single lost time injury throughout the 6.8 million-man hours required to build the facility.

ADNOC Gas, operates across the gas value chain, from receipt of raw gas feedstock from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to domestic and international customers.

ADNOC Gas supplies approximately 60% of the UAE’s sales gas needs and supplies end-customers in over 20 countries.