Adnoc Gas awards $1.34bn gas pipe contracts

Adnoc Gas, a unit of state-owned Adnoc, on July 3 announced the award of $1.34bn in contracts for the expansion of its natural gas pipeline network. The contracts have been awarded to Petrofac Emirates and a consortium consisting of National Petroleum Construction Co. and C.A.T International.

Under the sales gas pipeline network enhancement (ESTIDAMA) programme, the new pipeline will extend Adnoc Gas' existing network from approximately 3,200 km to over 3,500 km. This expansion will enable the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE, the company said.

The ESTIDAMA programme consists of several packages, with the first one awarded in 2021 for early modification works on existing pipelines. It was successfully completed in 2023. The second and third packages, which are being awarded now, involve the construction of new pipelines and a gas compression plant in Habshan to deliver essential feed gas to key customers across the Emirates.

Adnoc had in January announced the formation of Adnoc Gas. The new entity is involved in processing, operations and marketing of natural gas. It combines the operations, maintenance and marketing of the Adnoc Gas Processing and Adnoc LNG businesses into one consolidated business.