ADNOC Gas llc has announced the award of engineering, procurement and construction (EPC) contracts for the next phase of enhancing the UAE’s sales gas pipeline network, known as the “ESTIDAMA Project”. This move comes as ownership of ESTIDAMA shifts from ADNOC Gas to ADNOC, aimed at significantly optimizing ADNOC Gas’ capital efficiency.
The combined value of the EPC contracts amounts to $550M (AED 2B) and has been awarded to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates.
Approximately 70% of the contract value is expected to circulate back into the UAE economy through ADNOC’s In-Country Value (ICV) programme, thereby supporting local economic growth and diversification.
The ESTIDAMA Project will extend ADNOC Gas’ UAE natural gas pipeline network from approximately 3,200 kilometres to over 3,500 kilometres. This expansion aims to enable the transportation of larger volumes of natural gas to customers in the Northern Emirates of the UAE.
Despite the ownership transfer, ADNOC Gas will continue to manage ESTIDAMA, leveraging its expertise in construction and pipeline operations. ADNOC will cover the capital expenditures for this vital infrastructure project.
Dr. Ahmed Alebri, CEO of ADNOC Gas, stated, “This contract award supports the ongoing expansion of the UAE’s gas pipeline network, which will deliver more affordable and sustainable natural gas to a wider range of locations across the country. We are proud to lead in meeting the growing demand for gas and supporting the UAE’s objective of achieving gas self-sufficiency.”
With the ownership transfer of the ESTIDAMA Project to ADNOC, ADNOC Gas anticipates benefiting from the pipeline networks’ expansion while enhancing its capital efficiency to maximize shareholder value.
ADNOC Gas will continue to expand its domestic operations through ESTIDAMA, paying ADNOC a variable transmission fee based on actual pipeline throughput. Additionally, ADNOC Gas will receive compensation for operating and maintaining ESTIDAMA on behalf of ADNOC.