Dubai, UAE — ADNOC Gas has awarded contracts worth $1.34 billion to Petrofac Emirates and a consortium consisting of National Petroleum Construction Co. and CAT International Ltd.
This expansion project, known as the sales gas pipeline network enhancement (ESTIDAMA) program, aims to extend ADNOC Gas’ existing pipeline network from approximately 3,200 kilometers to over 3,500km. The objective is to facilitate the transportation of larger quantities of natural gas to customers in the Northern emirates of the United Arab Emirates (UAE).
Ahmed Mohamed Alebri, the Chief Executive Officer of ADNOC Gas, expressed his enthusiasm for the network expansion, highlighting the benefits it will bring to locations across the UAE. He emphasized the advantages of lower-cost, sustainable, and cleaner gas, enabling enhanced industrial access to natural gas as a cost-competitive and lower-carbon intensive fuel. Alebri stated that the expanded pipeline will support ADNOC Gas in achieving its goal of gas self-sufficiency for the UAE, while also benefiting the company’s shareholders.
As part of ADNOC’s In-Country Value (ICV) program, which seeks to bolster the local value chain by promoting local manufacturing and supporting domestic industries, over 70 percent of the contract value is expected to circulate back into the UAE economy.
The ESTIDAMA program comprises multiple packages, with the first package awarded in 2021 for early modification works on existing pipelines, which were completed in 2023. The second and third packages, currently being awarded, involve the construction of new pipelines and a gas compression plant in Habshan. This infrastructure will be crucial in delivering essential feed gas to key customers across the Emirates.
ADNOC’s integrated gas masterplan aims to connect all segments of the UAE’s gas value chain, ensuring a sustainable and economically viable natural gas supply to meet both local and international demand. The plan encompasses innovative approaches and technologies to maximize gas recovery from existing fields and develop untapped resources.