Top integrated gas processor Adnoc Gas has awarded a $1.34 billion contract to Petrofac Emirates and a consortium of Petroleum Construction Corporation and CAT International to expand its gas pipeline network.
The company, a subsidiary of Abu Dhabi National Oil Company (Adnoc), said the work was carried out under the Marketing Gas Network Enhancement (Estidama) programme.
The new pipeline will extend Adnoc Gas’ existing pipeline network from approximately 3,200 kilometers to more than 3,500 kilometers, enabling more gas to be delivered to customers in the northern emirates of the UAE.
He said this strategic pipeline expansion will drive ADNOC’s further growth as it continues to provide sustainable gas supplies in the UAE, supporting the company’s strategy to increase market share and expand its customer base.
Ahmed Mohamed Alebri, Chief Executive Officer of Adnoc Gas, said: “Our strategic network expansion will bring the advantages of low-cost, sustainable and clean gas to the world by enhancing industrial access to gas. To more locations in the UAE, natural gas is a cost-competitive, low-carbon-intensive fuel.”
“The expanded pipeline will drive further growth for Abu Dhabi Gas and its shareholders as we fulfill our mission of making the UAE self-sufficient in gas,” he noted.
As part of Adnoc’s highly successful Domestic Value (ICV) programme, which aims to enhance the UAE’s local value chain by encouraging local manufacturing and supporting local industry, more than 70% of contract value is expected to flow back into the UAE economy.
The program is made up of multiple projects, the first of which was awarded in 2021 for early retrofit works on the existing pipeline, which was successfully completed in 2023.
The second and third projects currently being awarded include the construction of new pipelines and a gas compression plant at Mount Hab, which will help deliver the necessary feedstock gas to key customers across the emirate.
Alebri said ADNOC’s integrated gas master plan connects all parts of the UAE’s gas value chain, ensuring a sustainable and economical supply of gas to meet local and international demand.
He added that the program includes innovative approaches and technologies to increase gas recovery from existing fields and develop untapped resources.– trade arab news agency