July 15, 2024
1 min read

ADNOC Gas awards $550m for UAE infra expansion

The EPC contracts are worth a combined $550 million (AED2 billion) and were awarded to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates…reports Asian Lite News

ADNOC Gas plc has announced the award of engineering, procurement and construction (EPC) contracts for the next phase of the UAE sales gas pipeline network enhancement “ESTIDAMA Project”.

Separately, ownership of ESTIDAMA is being transferred from ADNOC Gas to ADNOC, thereby significantly optimising ADNOC Gas’ capital efficiency.

The EPC contracts are worth a combined $550 million (AED2 billion) and were awarded to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates.

Approximately 70% of the contracts’ value is expected to flow back into the UAE economy through ADNOC’s In-Country Value (ICV) programme, supporting local economic growth and diversification.

ESTIDAMA will extend the UAE’s natural gas pipeline network operated by ADNOC Gas from approximately 3,200 kilometres to over 3,500 kilometres, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE.

Following the ownership transfer, ADNOC Gas will continue to manage ESTIDAMA, leveraging its expertise in construction and pipeline operations, with ADNOC covering the capital expenditures for this critical infrastructure project.

Dr. Ahmed Alebri, Chief Executive Officer of ADNOC Gas, said, “This award supports the ongoing expansion of the UAE’s gas pipeline network, which will bring lower-cost and sustainable natural gas to more locations across the country. We are proud to play a leading role in meeting the growing demand for gas across the country and enabling the UAE’s goal of gas self-sufficiency.

“With the transfer of ownership of the ESTIDAMA Project to ADNOC, ADNOC Gas will continue to benefit from the expansion of the pipeline networks, while improving our capital efficiency to ensure that we maximise value for our shareholders.”

ADNOC Gas will continue to expand its domestic business through ESTIDAMA, paying ADNOC a variable transmission fee for actual throughput of the pipeline. ADNOC Gas will also be paid to operate and maintain ESTIDAMA on behalf of ADNOC.

ALSO READ-ADNOC saves $500m from 30 AI tools

Previous Story

Billionaires Musk, Ackman formally endorse Trump

Next Story

New on OTT: ‘Kakuda’ Brings Laughter, ‘Maharaja’ Thrills

Latest from Arab News

Virgin Atlantic Launches Heathrow–Riyadh Route

With Riyadh rapidly evolving into a dynamic hub for commerce, tourism, and cultural exploration, the new route strengthens the city’s position as a gateway to the Kingdom’s diverse offerings King Khalid International

Modi Strengthens Defence, Energy Ties in Saudi

Both sides agreed to hold the next Strategic Partnership Council meeting at a mutually convenient date….reports Asian Lite News India and Saudi Arabia have expanded their bilateral Strategic Partnership Council by adding

Muslim World League Condemns Terror in Pahalgam

Prime Minister Modi commended the firm stand of the Muslim World League against extremism, terrorism and violence….reports Asian Lite News The Muslim World League has condemned the horrific terror attack in Pahalgam,

Pahalgam attack: Modi Cancels Saudi Plans

Sources said that the Prime Minister also skipped the official dinner hosted by Saudi Arabia and has decided to cut short his visit…reports Asian Lite News Prime Minister Narendra Modi will shorten

Modi Begins Saudi Visit

This will be Prime Minister Modi’s first visit to the historic city of Jeddah where the second meeting of the Strategic Partnership Council (SPC) will also take place…reports Asian Lite News Prime
Go toTop

Don't Miss

Sisi congratulates Mansour, Khaled on new roles

During the phone calls, the Egyptian president wished the UAE

Sheikh Mohammed receives UAQ Ruler

Sheikh Mohammed and Sheikh Saud exchanged greetings on the occasion