ADNOC Invests $1.34 Billion in 186-Mile Expansion of UAE Gas Pipeline Network

(P&GJ) — Petrofac Emirates LLC and a Consortium made up of National Petroleum Construction Co. PJSC and C.A.T International Ltd. have been awarded substantial contracts for a combined $1.34 billion by ADNOC Gas Plc, Saudi Gulf Projects reported.

According to the Sales Gas Pipeline Network Enhancement (ESTIDAMA) initiative, these contracts have been given in order to assist the growth of ADNOC Gas' natural gas pipeline network.

ADNOC Gas is set to revolutionize natural gas distribution in the Northern Emirates of the United Arab Emirates with an ambitious expansion plan, increasing its pipeline network by approximately 300 km (186 miles) from over 3,200 km (1,988 miles) to over 3,500 km (2,174 miles).

ADNOC Gas' sustained growth will be fueled by the strategically expanded pipeline network, further solidifying its position as the UAE's top provider of sustainable gas. This move fits with the company's overall plan to increase its market share and draw in a larger customer base in order to offer the area gas that is both dependable and ecologically beneficial.

According to Saudi Gulf Projects, Ahmed Mohamed Alebri, CEO of ADNOC Gas, highlighted that the strategic network expansion aims to bring the benefits of lower-cost, sustainable, and cleaner gas to various locations in the UAE.

He said that by enhancing industrial access to natural gas, which is a cost-competitive and environmentally friendly fuel, the expanded pipeline will foster further growth for ADNOC Gas and its shareholders. This initiative aligns with their commitment to achieving gas self-sufficiency for the UAE.

More than 70% of the contract value will be reinvested in the UAE economy thanks to ADNOC's strong In-Country Value (ICV) initiative, which was created to help local industry and strengthen the UAE's local value chain.

The first part of the ESTIDAMA initiative, which comprises several phases, entailed modifying current pipelines and was successfully finished in 2023. Construction of additional pipelines and a gas compression facility in Habshan are part of the second and third stages, which are now under way.

These projects will provide crucial infrastructure for supplying feed gas to important clients across the Emirates.

The UAE's entire gas value chain is connected by ADNOC's integrated masterplan, providing a cost-effective and sustainable natural gas supply to fulfill domestic and global demand. The strategy calls for the development of unexplored resources as well as increased gas recovery from current assets.

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