ADNOC Gas has recently awarded contracts worth $1.34 billion for the construction of a new natural gas pipeline to the northern emirates.
ADNOC Gas plc has announced the award of $1.34 billion in contracts to Petrofac Emirates LLC and the Consortium between National Petroleum Construction Co. PJSC and C.A.T International Ltd. for the expansion of its natural gas pipeline network. This significant investment aims to enhance the transportation capacity of ADNOC Gas and meet the growing demand for natural gas in the northern emirates of the UAE.
Under the sales gas pipeline network enhancement (ESTIDAMA) program, the new pipeline will extend ADNOC Gas’ existing network from approximately 3,200 kilometers (km) to over 3,500 km. This expansion will enable the company to transport higher volumes of natural gas to customers in the northern emirates, supporting the UAE’s energy requirements and promoting sustainable energy solutions.
The strategic pipeline extension aligns with ADNOC Gas’ broader objective of increasing its market share and expanding its customer base. By providing lower-cost, sustainable, and cleaner gas to more locations across the UAE, ADNOC Gas aims to enhance industrial access to natural gas, a cost-competitive and lower-carbon intensive fuel. This network expansion will facilitate economic growth and contribute to ADNOC Gas’ commitment to achieving gas self-sufficiency for the UAE.
Commenting on the expansion plans, Ahmed Mohamed Alebri, Chief Executive Officer of ADNOC Gas, expressed the company’s dedication to delivering the advantages of natural gas to a wider range of locations across the UAE. The expanded pipeline network will contribute to lower emissions, reduced costs, and improved environmental sustainability. Moreover, it will support ADNOC Gas’ shareholders by creating new opportunities for growth and ensuring a stable supply of natural gas.
ADNOC Gas is committed to supporting the UAE’s local value chain through its highly successful In-Country Value (ICV) program. Over 70% of the contracts’ value is expected to be reinvested in the UAE economy, promoting local manufacturing and supporting various industries. This approach reinforces ADNOC’s commitment to sustainable economic development and the growth of the UAE’s energy sector.
The ESTIDAMA program consists of several packages, with the first one awarded in 2021 for early modification works on existing pipelines. These modifications were 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. The gas compression plant will play a crucial role in delivering essential feed gas to key customers across the Emirates, ensuring a reliable and consistent supply.
ADNOC’s integrated gas masterplan encompasses the entire gas value chain in the UAE, providing a sustainable and economical natural gas supply to meet both local and international demand. The masterplan employs innovative approaches and technologies to maximize gas recovery from existing fields and explore untapped resources. This comprehensive strategy positions ADNOC Gas as a key player in the global energy market while ensuring the UAE’s energy security.
In conclusion, ADNOC Gas’ investment of $1.34 billion in the expansion of its natural gas pipeline network represents a significant step toward meeting the growing demand for natural gas in the northern emirates of the UAE. This strategic move aligns with ADNOC’s commitment to sustainable energy solutions, supporting economic growth, and contributing to the UAE’s energy self-sufficiency. By fostering local value creation and implementing innovative technologies, ADNOC Gas continues to strengthen its position as a leading player in the global energy industry.
