Skip to content Skip to Search
Skip navigation

Adnoc Gas awards $550m Northern Emirates pipeline contract

By Eva Levesque
Adnoc liquid gas Adnoc Gas
Adnoc Gas has handed the ownership of Estidama, its $2.4bn pipeline network, to its parent company Adnoc
  • Network to grow by 300km
  • Fourth contract since 2021
  • Pipelines transferred to parent company

Adnoc Gas has awarded a $550 million engineering procurement and construction contract for the next phase of Estidama, its natural gas pipeline network project.

It has also transferred the ownership of Estidama, worth $2.4 billion, to its parent company, Abu Dhabi National Oil Company.

The contract, awarded to NMDC Energy of Abu Dhabi and Galfar Engineering and Contracting of Oman, will extend the UAE’s natural gas pipeline network to 3,500km further into the in the Northern Emirates.

Person, Electronics, Mobile Phone

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

Around 70 percent of the contract’s value is expected to flow back into the UAE’s economy through Adnoc’s in-country value programme, which is aimed at supporting local companies and diversification.

The goals of the Estidama scheme are to ensure the sustainable supply of natural gas to more locations across the UAE, meet local demand, and enable the UAE’s gas self-sufficiency.

The first contract was awarded in 2021 and completed in 2023. Last year, the second and third Estidama engineering procurement and construction contracts were awarded at a combined value of $1.34 billion.

They included constructing new pipelines and a gas compression plant at Adnoc’s Habshan complex.

Saudi Arabia and Oman are also expanding their gas pipelines in response to growing domestic gas demand.

Saudi Aramco awarded contracts exceeding $25 billion last month to expand its strategic gas programme.

Oman’s sole gas transmission operator and owner, OQ Gas Networks, is developing new pipeline segments and compressor stations to increase gas transportation efficiency. It plans to increase the pipeline network to more than 4,200km this year and nearly 4,500km by 2027.

Latest articles

Alcohol tax in Dubai was suspended in 2023

Dubai to reintroduce 30% alcohol tax

Dubai will reintroduce the 30 percent sales tax on alcohol in January, according to an email sent by a local alcohol distributor to venues in the city.  The correspondence sent by MMI, which also operates off licences in the city, said: “Please note, Dubai Government have informed us the 30 percent municipality tax on alcoholic […]

EDB food wheat farm sharjah

EDB hails $305m in financing for agriculture businesses

One dirham in 12 lent by Emirates Development Bank in the past three years has gone into financing for agriculture technology and food production businesses, the bank said on Thursday. EDB said the AED1.12 billion ($305 million) of loans represent 8 percent of the AED14.72 billion of financing it has provided since April 2021.  It […]

Animal, Bird, Chicken

Almarai to foray into food segments beyond dairy

Almarai, the largest dairy producer in Saudi Arabia, will launch seafood and red meat facilities to help achieve the Vision 2030 goal of becoming food self-reliant. The company is building domestic production facilities for seafood and beef and lamb, which will become operational in two years, Bloomberg reported, citing CEO Abdullah Albader. In March, Almarai […]

Turkish arms exports

Turkish arms exports up 19% year on year

Turkish defence companies have posted another record-breaking year for exports, with a 19 percent increase year on year and sales to 178 countries. Sales from January to November this year have already eclipsed 2023’s total of arms and equipment shipments to overseas clients, reflecting the arms industry’s technical developments and broader product range.  Defence and […]