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Adnoc inks AED 2 bn contracts to expand gas infrastructure: Adnoc Gas awarded two engineering, procurement & construction (EPC) contracts worth USD 550 mn (AED 2 bn) for its gas pipeline network enhancement project, Estidama, according to a statement (pdf). A USD 254.6 mn contract for a new pipeline and its associated facilities went to NMDC Energy, formerly known as NPCC, according to a separate press release (pdf).The other contract went to Galfar Engineering & Contracting.
About the project: The USD 2.4 bn Estidama pipeline project will see Adnoc Gas extend the UAE’s pipeline network to over 3.5k km, up from 3.2k km, boosting the volume of natural gas reaching consumers in the Northern Emirates.
This is not NMDC’s first time working on the project: The firm already awarded some USD 1.3 bn in contracts to NMDC (at the time known as NPPC), Petrofac Emirates, and C.A.T International last year to construct new pipelines and a gas compression plant at Adnoc’s Habshan complex. It also awarded a contract to complete modification works on existing pipelines in 2021.
Adnoc Gas is transferring ownership of Estidama to Adnoc, allowing Adnoc Gas to operate and manage the project, while Adnoc covers the capital expenditures.
The gas giant plans to invest over USD 13 bn by 2029 to expand its processing capacity and reach more customers, Chairman Sultan Al Jaber said earlier this year. This includes contracts worth USD 4.9 bn awarded in 2023.
