Adnoc Gas awards $550mn EPC contracts for UAE gas pipe project

Adnoc Gas, a unit of UAE’s Adnoc, announced on July 15 the award of $550mn engineering, procurement, and construction (EPC) contracts for the next phase of the UAE gas pipeline network enhancement project. The contract has been awarded to NMDC Energy and Galfar Engineering & Contracting W.L.L Emirates.

The project, called ESTIDAMA, comprises several packages with a total value of $2.4bn. The first contract, awarded in 2021 and completed in 2023, involved modification works on existing pipelines. In July 2023, the second and third ESTIDAMA EPC contracts were awarded at a combined value of $1.34bn, which includes the construction of new pipelines and a gas compression plant at Adnocs Habshan complex.

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 of the UAE.

Ownership of ESTIDAMA is being transferred from Adnoc Gas to Adnoc. Following the ownership transfer, Adnoc Gas will continue to manage ESTIDAMA, with Adnoc covering the capital expenditures for the project.

Adnoc had in January 2023 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.