ADNOC Gas Company, a subsidiary of national energy company ADNOC, announced on Monday the award of contracts worth $1.34 billion to expand its new gas pipeline network in the northern region of the UAE.
The contracts were awarded to Petrofac Emirates LLC and a consortium between national oil construction company PJSC and CAT International Ltd., ADNOC Gas, a subsidiary of national energy company Abu Dhabi National Oil Company.
Ahmed Mohamed Al-Alaibri, Chief Executive Officer of ADNOC Gas, said: “Our strategic network expansion will leverage the benefits of low-cost, sustainable and clean gas by enhancing industry’s access to gas. Brought to more locations in the UAE, natural gas is a cost-competitive and easy-to-use natural gas. Low carbon intensive fuel. The expanded pipeline will boost ADNOC as we fulfill our mission of making the UAE gas self-sufficient Further growth for the gas company and shareholders.”
The new pipeline extends ADNOC’s network to more than 3,500 kilometers.
More than 70 percent of contract value is expected to flow back into the UAE economy as part of ADNOC’s Domestic Value (ICV) scheme, which aims to strengthen local value chains by encouraging local manufacturing and supporting local industry.
ADNOC Gas holds 95% of the UAE’s natural gas reserves, which is estimated to be the seventh largest in the world. It meets more than 60% of the UAE’s natural gas needs. Earlier this year, one of the world’s largest IPOs raised $2.5 billion.
(Writing by Brinda Dalasha; Editing by Saipan Scalia)