Energy

Adnoc Gas to spend $3.6bn to expand UAE facilities

By Pramod Kumar

August 9, 2023, 5:56 AM

Adnoc Gas, a subsidiary of Abu Dhabi National Oil Company (Adnoc), has awarded a $3.6 billion (AED13.1 billion) contract to the joint venture between Abu Dhabi-based National Petroleum Construction Company (NPCC) and Spain’s Tecnicas Reunidas SA 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 supply to the Ruwais Industrial Complex.

The project aims to increase ethane extraction by 35-40 percent from Adnoc Gas’ existing onshore facilities in the Habshan complex by constructing new gas processing facilities.

In addition, it will unlock further value from existing feedstock and deliver it to Ruwais via a dedicated 120 km natural gas liquids pipeline.

Over 70 percent of the award value will flow back into the UAE’s economy under Adnoc’s in-country value programme, supporting local economic growth and diversification.

Ahmed Mohamed Alebri, CEO of Adnoc Gas, said: “The expansion of our gas processing infrastructure will provide additional energy to the country’s growing industrial section, while stimulating economic growth.”

The Abu Dhabi-listed company reported a net income of AED2.25 billion for the first half of 2023, down 12 percent from AED2.55 billion a year-earlier.

Revenues reached AED10.62 billion, falling 20 percent from AED13.28 billion during the period.

Adnoc Gas in July signed a 14-year supply agreement with India’s state-owned energy firm Indian Oil Corporation Limited.

The deal involves the export of up to 1.2 million metric tonnes per annum of liquefied natural gas valued at $7 billion to $9 billion.

Adnoc last week said it will acquire a 30 percent equity stake in the Absheron gas and condensate field off the coast of Azerbaijan as part of a plan to grow its international gas business.