UAE’s ADNOC Gas plc announced Monday that it has awarded engineering, procurement and construction (EPC) contracts for the next phase of UAE's gas pipeline network enhancement, or the Estidama Project. The EPC contracts are worth $550 million (Dh2 billion) and were awarded to NMDC Energy PJSC and Galfar Engineering and Contracting WLL Emirates.
ADNOC Gas also said that it is transferring ownership of the $2.4 billion UAE gas pipeline expansion project to ADNOC, optimising its capital efficiency.
The Estidama project will extend the UAE’s natural gas pipeline network operated by ADNOC Gas from approximately 3,200 kilometres to over 3,500 kilometres, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE.
Following the ownership transfer, ADNOC Gas will continue to manage ESTIDAMA, leveraging its expertise in construction and pipeline operations. ADNOC will also cover the capital expenditures for this critical infrastructure project.
Dr Ahmed Alebri, CEO of ADNOC Gas, said, “This award supports the ongoing expansion of the UAE’s gas pipeline network, which will bring lower-cost and sustainable natural gas to more locations across the country.”
He added, “We are proud to play a leading role in meeting the growing demand for gas across the country and enabling the UAE’s goal of gas self-sufficiency.”
Dr Aberi said, “With the transfer of ownership of the Estidama Project to ADNOC, ADNOC Gas will continue to benefit from the expansion of the pipeline networks while improving our capital efficiency to ensure that we maximise value for our shareholders.”
ADNOC Gas will continue to expand its domestic business through Estidama, paying ADNOC a variable transmission fee for the actual throughput of the pipeline. ADNOC Gas will be paid to operate and maintain Estidama on behalf of ADNOC.
ADNOC Gas stated that approximately 70 per cent of contract value would flow back into the UAE economy through ADNOC’s In-Country Value (ICV) programme. The ICV progamme, launched by ADNOC in 2018, is an initiative designed to achieve the optimum value from the country's oil and gas resources.
