ADNOC Gas awards contracts for UAE Estidama pipeline expansion project
Date
7/15/2024 5:15:28 AM
(MENAFN) ADNOC Gas, a prominent global gas processing company, has announced the award of engineering, procurement, and construction (EPC) contracts for the remaining packages of the UAE’s Estidama Natural gas pipeline expansion project. Valued at AED 2 billion (USD550 million), these contracts have been granted to National Marine Dredging Group and Galfar Engineering and Contracting.
Simultaneously, ADNOC Gas has decided to transfer ownership of the "Sustainability" project to ADNOC itself, aimed at optimizing capital expenditures within the company. Nearly 70 percent of the contract value will be reinvested into the local economy through ADNOC’s National Content Enhancement Program, thereby supporting and diversifying economic growth locally.
The Estidama project is pivotal in expanding ADNOC Gas’s natural gas pipeline network from 3,200 km to over 3,500 km. This expansion will enhance the capacity to transport larger volumes of natural gas to customers in the northern emirates of the UAE. Despite the transfer of ownership, ADNOC Gas will continue to manage the Estidama project, leveraging its extensive expertise in pipeline construction and management.
Ahmed Mohamed Al Abri, CEO of ADNOC Gas, emphasized the significance of these new contracts in bolstering the UAE’s pipeline infrastructure. He highlighted their role in ensuring sustainable and cost-effective supply of natural gas across more locations within the country, thereby supporting the UAE’s objective of achieving gas self-sufficiency.
Regarding the ownership transfer of the "Sustainability" project, Al Abri reaffirmed ADNOC’s commitment to optimizing infrastructure investments to deliver maximum value for its shareholders. This strategic move aims to streamline operations and enhance efficiency within ADNOC, reinforcing its leadership in advancing the UAE’s energy sector goals.
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