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    Saipem to help UAE boost sour gas treatment

Summary

The Italian energy company lands a $510mn EPC contract for the Shah Gas plant.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Middle East, Corporate, Contracts and tenders, News By Country, United Arab Emirates

Saipem to help UAE boost sour gas treatment

Italian energy company Saipem said June 15 it had secured a $510mn contract from a gas subsidiary of the Abu Dhabi National Oil Company to help stimulate the treatment of sour gas.

Saipem received an engineering, procurement and construction (EPC) contract from subsidiary ADNOC Sour Gas to help increase the gas treatment capacity of Abu Dhabi’s Shah Gas plant by 13%, from the current rate of 1.28bn ft3/day to 1.45bn ft3/day.

The plant is the largest sour-gas plant in the world. But because of the high sulphur content, the facility requires precision technology to ensure operations are safe and environmentally responsible. Saipem said it expects minimal disruptions to operations while the work is underway, though no timeline for completion was revealed.

The EPC contract for Saipem comes more than a year after ADNOC scrapped contracts with UK oilfield services provider Petrofac during an unprecedented collapse in energy prices. Two EPC contracts worth $1.65bn covered commissioning work at Arzanah Island and surrounding offshore fields and the Ghasha ultra-sour gas concession, a project the UAE had banked on to help achieve its goal of becoming gas self-sufficient.

Apart from sour natural gas, ADNOC has the capacity to produce 11bn ft3/day of natural gas, with much of that supplied to customers in the UAE.