RIYADH: The UAE’s gas sector is set to receive a boost as the state-owned ADNOC Gas awarded a $3.6 billion project to a joint venture firm to expand its gas processing infrastructure.
The contract will see the joint venture between state-owned National Petroleum Construction Co. and Spain’s Tecnicas Reunidas expand the infrastructure while optimizing supply to the Ruwais Industrial Complex which is 240 km west of Abu Dhabi.
The company’s Maximizing Ethane Recovery and Monetization project will aim to unlock further value from existing feedstock and deliver it to Ruwais via a 120 km natural gas liquids pipeline.
Additionally, the project will aim to increase ethane extraction by 35 to 40 percent from ADNOC Gas’ existing onshore facilities in the Habshan complex by developing new gas processing facilities.
“This capital project represents ADNOC Gas’ latest investment in its gas processing infrastructure and underscores our commitment to responsibly meeting our customers’ current and future energy demand for natural gas and its feedstock,” said ADNOC Gas CEO Ahmed Mohamed Al-Ebri.
The company also stated that 70 percent of the contract’s value will flow back into the UAE’s economy under the mother company ADNOC’s In-Country Value program that aims to support local economic growth and diversification.
“The expansion of our gas processing infrastructure will also provide additional energy to the country’s growing industrial section, while stimulating economic growth and diversification through the significant ICV generated by the contract,” he added.
ADNOC Gas aims to leverage opportunities that arise from ADNOC’s integrated gas masterplan which links every part of the gas value chain in the UAE, ensuring a sustainable and economic supply of natural gas to meet local and international demands, according to the company’s press release.
The plan also includes new approaches and technologies to enable increased gas recovery from existing fields and develop untapped resources.
Founded in 1972, ADNOC is the world’s 12th largest oil company in terms of production. It holds several entities under its umbrella including ADNOC Gas which acts as its integrated gas processing unit.
