Gulf Construction Online - Adnoc Gas awards $554m UAE infrastructure contracts

UAE Focus

Adnoc Gas awards $554m UAE infrastructure contracts

01 August 2024

Adnoc Gas has announced the award of engineering, procurement and construction (EPC) contracts for the next phase of the UAE sales gas pipeline network enhancement Estidama Project.

The EPC contracts are worth a combined AED2 billion ($554 million) and were awarded to NMDC Energy and Galfar Engineering & Contracting.

Approximately 70 per cent of the contracts’ value is expected to flow back into the UAE economy through Adnoc’s In-Country Value (ICV) program, supporting local economic growth and diversification.

Estidama will extend the UAE’s natural gas pipeline network operated by Adnoc Gas from approximately 3,200 km to over 3,500 km, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates.

Ownership of Estidama is being transferred from Adnoc Gas to Adnoc, thereby optimising Adnoc Gas’ capital efficiency. Following the ownership transfer, Adnoc Gas will continue to manage Estidama, leveraging its expertise in construction and pipeline operations, with Adnoc covering the capital expenditures for this critical project.

Dr Ahmed Alebri, Chief Executive Officer of Adnoc Gas, said: “This award supports the ongoing expansion of the UAE’s gas pipeline network, which will bring lower-cost and sustainable natural gas to more locations across the country. We are proud to play a leading role in meeting the growing demand for gas across the country and enabling the UAE’s goal of gas self-sufficiency.

Meanwhile, NMDC Energy has announced that it has secured a $255-million EPC contract from Adnoc Gas for the programme.