The transmission pipelines will connect the Ruwais LNG facility with the Habshan Complex, where the LPP and compression facilities will be located. With its five plants, 14 processing trains, and 6.1 billion standard cubic feet per day (bscfd) capacity, Habshan is said to be one of the world’s largest integrated gas processing complexes.
“These contract awards reaffirm ADNOC Gas’ commitment to delivering sustainable growth and maximizing shareholder value. We are investing in world-class infrastructure and innovative technologies as we expand our capacity in LNG liquefaction and strengthen our position as a global player,” noted Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas.
The largest contract, valued at $1.24 billion for the LPP, was awarded to a consortium comprising Engineering for the Petroleum and Process Industries (ENPPI) and Petrojet. Next, China Petroleum Pipeline Engineering Company, a subsidiary of the China National Petroleum Corporation (CNPC), won a $514 million contract for transmission pipelines.
Petrofac Emirates is set to develop the new compression facilities under the third contract, valued at $335 million. According to the firm, this is also its third engineering, procurement, and construction (EPC) contract for the Habshan Complex. The new assignment encompasses the two gas compressor trains, associated utilities, and power systems.
Elie Lahoud, Chief Operating Officer of Petrofac’s Engineering & Construction division, remarked: “The expansion of our role at the Habshan Complex is testament to the delivery expertise deployed by our team on this and various other projects throughout our long history supporting ADNOC in the UAE.”
The contract awards form part of the $15 billion capital expenditure (Capex) plan through 2029, outlined in ADNOC Gas’ recent strategy update. Since the energy major expects gas demand until 2030 to be 6%, higher than the previously expected 2%, it intends to increase Capex from $13 to $15 billion in 2025–2029. This is anticipated to boost the firm’s earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2029 by 40%.
ADNOC Gas says its major focus until 2029 will be on the development and delivery of three large projects under construction post-final investment decisions (FID), one of which is the Ruwais LNG.
The updated growth strategy also advances the design and concept study of large-scale pre-FID projects to accommodate a “significant” increase in the company’s gas processing capabilities as ADNOC expands its upstream production capacity, as well as the Bab Gas Cap project, which are expected to be completed after 2029.
Additionally, ADNOC Gas says the Capex for the LPP, compression facilities, and transmission pipelines does not form part of the cost it previously outlined for the intended acquisition of its parent company’s majority stake in the Ruwais LNG project when the plant enters operation in 2028.
