ADNOC Moves Forward With US$5 Billion Gas Development Project

(Image courtesy of ADNOC)

ADNOC Gas Plc (ADNOC) has taken a final investment decision (FID) and awarded US$5 billion in contracts for the first phase of its Rich Gas Development (RGD) Project, marking a key milestone in the company’s largest-ever capital investment.

The contracts involve expanding key processing units to increase throughput and improve operational efficiency across four ADNOC Gas Facilities: Asab, Buhasa, Habshan (Onshore), and the Das Island liquefaction facility (Offshore). The company intends to take FIDs on two additional phases of the RGD project at Habshan and Ruwais to enable the delivery of greater production capacity to meet growing market demands.

The RGD project will enable the development of new gas reservoirs, which are key to boosting liquid gas exports, supporting gas self-sufficiency in the UAE, and providing essential feedstock to the country’s growing petrochemical industry.

Engineering, procurement, and construction management (EPCM) contracts have been awarded in three tranches for phase 1. The first tranche, valued at US$2.8 billion, has been awarded to Wood for the Habshan facility. Wood’s scope includes the delivery of substantial upgrades and debottlenecking solutions to the existing Habshan and Habshan 5 gas processing mega-complexes and pipelines, including brownfield modifications and the installation of new facilities.

The remaining two tranches – US$1.2 billion for the Das Island liquefaction facility and US$1.1 billion for the Asab and Buhasa facilities – have been awarded to two consortia: Petrofac; and Kent Plc.

Petrofac will provide EPCM services and oversee procurement and construction contracts to build a new inlet facility, two new gas dehydration and compression trains, each with a capacity of 420 MMscf/d, and associated infrastructure. Petrofac will also upgrade existing facilities to increase the site’s capacity for collecting and transporting raw natural gas.

Kent has been awarded the EPCM contract for the optimization and expansion of the Asab and Buhasa gas processing facilities. Kent’s scope will focus on debottlenecking and optimizing existing assets at the Asab and Buhasa sites, enabling increased throughput and improved operational efficiency.

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