UAE: Adnoc awards $3.6 billion contract to expand its gas processing infrastructure

Expansion will provide additional energy to the country's growing industrial section, while stimulating economic growth and diversification

By WAM

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Published: Wed 9 Aug 2023, 10:27 AM

Last updated: Wed 9 Aug 2023, 6:46 PM

Adnoc Gas plc, the world-class integrated gas processing company, today announced the award of a $3.6-billion (Dh13.1 billion) contract to the joint venture between National Petroleum Construction Company Co PJSC (NPCC) and Tecnicas Reunidas S.A. to expand its gas processing infrastructure in the UAE.

The scope of the contract includes the commissioning of new gas processing facilities which will enable an optimized supply to the Ruwais Industrial Complex.

The strategic Maximising Ethane Recovery and Monetisation (MERAM) project aims to achieve dual objectives; firstly, to increase ethane extraction, by a range of 35 - 40%, from Adnoc Gas's existing onshore facilities in the Habshan complex through the construction of new gas processing facilities; and secondly, to unlock further value from existing feedstock and deliver it to Ruwais via a dedicated 120 kilometer natural gas liquids (NGL) pipeline.

Over 70% of the award value will flow back into the UAE's economy under Adnoc's successful In-Country Value (ICV) programme, supporting local economic growth and diversification.

Ahmed Mohamed Alebri, Chief Executive Officer of Adnoc Gas, said, "This capital project represents Adnoc Gas' latest investment in its gas processing infrastructure and underscores our commitment to responsibly meeting our customers' current and future energy demand for natural gas and its feedstock.

"The expansion of our gas processing infrastructure will also provide additional energy to the country's growing industrial section, while stimulating economic growth and diversification through the significant ICV generated by the contract."

Natural gas is an important transitional fuel with lower carbon emissions when burned compared to other fossil fuels. It also serves as an important raw material in industrial value chains.

Adnoc Gas continues to leverage opportunities arising from Adnoc's integrated gas masterplan which links every part of the gas value chain in the UAE, ensuring a sustainable and economic supply of natural gas to meet local and international demand.

The plan includes new approaches and technologies to enable increased gas recovery from existing fields and develop untapped resources.

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