Abu Dhabi National Oil Company (Adnoc) on Wednesday awarded a major contract valued at Dh3.16 billion to boost gas supply and meet Abu Dhabi’s growing energy needs.
A consortium of Spain’s Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company will design, supply and build a new gas plant on Das Island that will process 245 million cubic feet of gas per day for domestic use.
The engineering, procurement and construction contract forms part of the second phase of the integrated development expansion (IGD-E) project, which will take 54 months to complete, according to a statement from Adnoc.
The project will add 245 million cubic feet per day of associated gas to the 1.4 billion cubic feet per day of offshore gas sent from Das Island to Adnoc Gas Processing’s Habshan gas facilities to be processed for use in power generation. “This agreement is a significant milestone as we work across the gas value chain to further integrate our offshore and onshore gas systems,” said Fatima Mohammad Al Nuaimi, Acting CEO of Adnoc LNG after signing the deal with top executives from Tecnicas Reunidas and Target Engineering Construction Company on Wednesday.
“It will enable us to deliver greater efficiency and performance, maximise the value of our gas assets and pursue our strategic objective to ensure a sustainable and economic gas supply that meets Abu Dhabi’s growing energy needs.”
The contract encompasses engineering, equipment and material supply, construction, installation, testing and commissioning of compression, as well as power generation and other auxiliary services.
It also includes the construction and commissioning of new gas facilities on Das Island.
Tecnicas Reunidas will lead the consortium and carry out the engineering and procurement for the project, while Target Engineering Construction Company will lead the construction and commissioning works on Das Island.
Adnoc’s Dh40 billion ($11 billion) Integrated Gas Development programme began in 2009 for the transfer of one billion cubic feet a day of high-pressure gas from the offshore Umm Shaif field, via Das Island, to Adnoc Gas Processing’s onshore facilities at Habshan and Ruwais. The programme was completed in 2013.
Subsequently, Phase 1 of the IGD-E project was launched in 2015 and was completed last month, boosting Adnoc’s offshore gas processing capacity by 400 million cubic feet per day to 1.4 billion cubic feet per day.
Phase I included the construction of a 4th gas dehydration unit and dry gas compression aftercooler on Das Island, gas pipelines, with a 117-kilometer offshore segment and 114-kilometer onshore segment, condensate pipelines and modifications to the Habshan gas processing complex.
According to Ehsan Khoman, Head of MENA Research and Strategy at MUFG Bank, the agreement plays into Adnoc’s long-term strategy of continually diversifying its operations by pursuing opportunities to achieve both operational efficiency and enhanced performance.
“This is part and parcel of the overarching goals of adhering to the increasing energy requirements for the Emirate by ensuring a sustainable gas supply, in line with the rising population.”
Source: Gulf News