Adnoc Gas PLC has announced the awarding of engineering, procurement, and construction (EPC) contracts worth $550 million for the expansion of the UAE’s sales gas pipeline network under the Estidama Project.
The contracts were secured by NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates. These EPC contracts will see the UAE’s natural gas pipeline network extended from approximately 3,200km to over 3,500km, facilitating the transportation of greater volumes of natural gas to customers in the northern Emirates.
Ownership of the Estidama Project is being transferred from Adnoc Gas to Adnoc, enhancing Adnoc Gas’s capital efficiency. Adnoc’s In-Country Value (ICV) programme will ensure that around 70% of the contract value is reinvested into the UAE economy, bolstering local economic growth and diversification.
Dr. Ahmed Alebri, Chief Executive Officer of Adnoc Gas, emphasized the importance of this expansion, stating, “This award supports the ongoing expansion of the UAE’s gas pipeline network, which will bring lower-cost and sustainable natural gas to more locations across the country. We are proud to play a leading role in meeting the growing demand for gas across the country and enabling the UAE’s goal of gas self-sufficiency.”
He added, “With the transfer of ownership of the Estidama Project to Adnoc, Adnoc Gas will continue to benefit from the expansion of the pipeline networks, while improving our capital efficiency to ensure that we maximize value for our shareholders.”
Adnoc Gas will manage the Estidama Project, leveraging its construction and pipeline operation expertise, while Adnoc will cover the capital expenditures for this vital infrastructure development. Adnoc Gas will also pay Adnoc a variable transmission fee based on the actual throughput of the pipeline and will receive payment for operating and maintaining Estidama on behalf of Adnoc.