Gulf Construction Online - Adnoc unit awards $1.3bn pipeline deal

UAE Focus

The new pipeline will extend Adnoc Gas’ existing network from 3,200 km to 3,500 km.

Adnoc unit awards $1.3bn pipeline deal

01 August 2023

Adnoc Gas, a top-class integrated gas processing company, has awarded contracts worth a total of $1.34 billion to Petrofac Emirates and a consortium of National Petroleum Construction Company (NPCC) 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 3,200 km to over 3,500 km, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates.

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.”

As part of Adnoc’s highly successful In-Country Value (ICV) programme, which aims to enhance the UAE’s local value chain by encouraging manufacturing and supporting its industries, over 70 per cent 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.