Adnoc Gas awards $550m Northern Emirates pipeline contract

Adnoc Gas

• 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.

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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.

• Abu Dhabi bets big on LNG

• Adnoc Gas to invest $13bn in domestic and international growth
• Adnoc Gas to spend $1.34bn expanding UAE pipeline

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.