Adnoc Gas, an integrated gas processing and sales company, has awarded key engineering, procurement and construction management (EPCM) contracts worth $5 billion for the first phase of its Rich Gas Development (RGD) project in Abu Dhabi, marking a key milestone in the company’s largest-ever capital investment.
These 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 final investment decisions (FID) 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, it stated.
On the new contracts, Adnoc Gas CEO Fatema Al Nuaimi said: "The FID and contract awards for the first phase of the Rich Gas Development project mark a significant milestone in our strategy to deliver +40% ebitda growth between 2023 and 2029."
"This strategic investment is expected to deliver significant new value for our shareholders and enable continued sustainable growth for the company, our employees, and the UAE," she stated.
According to Adnoc Gas, EPCM contracts have been awarded in three tranches for Phase 1. The first tranche, valued at $2.8 billion, has been awarded to Wood for the Habshan facility.
The remaining two tranches – $1.2 billion for the Das Island liquefaction facility and $1.1 billion for the Asab and Buhasa facilities – have been awarded to two consortia: Petrofac; and Kent, it stated.
On the contract win, Petrofac's Group CEO Tareq Kawash said: "We are delighted to have been entrusted by Adnoc Gas, one of our longest-standing customers, to undertake this contract in our home market of the UAE."
"We look forward to working together to safely and sustainably increase the gas processing capacity at Das Island," he stated.
Petrofac’s Engineering & Construction division COO Elie Lahoud said: "We are proud to support Adnoc Gas with the continued development of its major offshore asset. Through our long-standing partnership, we have demonstrated our commitment to predictable, high-quality delivery and look forward to contributing further to ADNOC’s support of the UAE’s energy goals."
Kent Chief Operating Officer Tush Doshi said: "This contract award is a clear testament to the strength of our relationship with Adnoc and our track record of successful delivery in the UAE."
"We are proud to support Adnoc Gas’ strategic ambitions with this important work at Asab and Buhasa. It reflects the confidence placed in Kent’s EPCM expertise and our commitment to excellence, safety and long-term value creation," he added.
Adnoc Gas said the Phase I of the RGD project focuses on optimising and debottlenecking existing gas assets while unlocking new and valuable gas streams.
As part of Adnoc Gas' long-term strategy, which is focused on growth and futureproofing its business, the RGD project aligns with the company’s vision to deliver important growth initiatives between 2025 and 2029, stated Al Nuaimi.
Additionally, the RGD project highlights Adnoc Gas’ commitment to enhancing In-Country Value (ICV), with plans to create hundreds of new, field-based technical positions by 2029, further contributing to the UAE’s economic growth, she added.-TradeArabia News Service
