Adnoc Gas awards Dhs2b contracts to expand UAE gas infrastructure

Adnoc Gas on Monday 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 (Dhs2 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.

Last month, NMDC Energy, in partnership with Technip Energies and JGC Corporation, have been awarded a contract worth $5.5 billion by Adnoc for the engineering, procurement and construction (EPC) of the lower-carbon Ruwais LNG project, located in Al Ruwais Industrial City, Abu Dhabi.

The project will consist of two natural gas liquefaction trains with a total LNG production capacity of 9.6 million tons per annum. The plant will use electric-driven motors instead of conventional gas turbines and will be powered by clean energy.

The plant is set to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the lowest-carbon intensity LNG plants in the world.

The project will more than double Adnoc’s LNG production capacity aligning with global natural gas demand and the shift towards decarbonisation.

Ahmed Al Dhaheri, CEO of NMDC Energy, commented, “We are proud to be entrusted by Adnoc with the Ruwais LNG project, which strengthens our position in the UAE’s energy landscape and underscores our dedication to advancing the country’s sustainable development. Utilizing nuclear energy for LNG production not only sets a new international standard for low-emission energy but also aligns with the UAE’s strategy for a sustainable future.”

Arnaud Pieton, CEO of Technip Energies, commented, “By powering electrified LNG trains with nuclear energy, this project sets a new standard for energy security and sustainability. By leveraging our low-carbon and electrified LNG leadership we will support Adnoc’s position as a reliable global natural gas supplier and commitment to decarbonisation.”

Farhan Mujib, Representative Director, President of JGC, commented, “We commit to leveraging our capabilities and experience for the lower-carbon Ruwais LNG project, bringing our proven track record in the LNG field.”

Separately, ADNOC Drilling Company and Alpha Dhabi Holding announced today that their joint venture Enersol RSC LTD has agreed to acquire an additional 42.206% equity stake in Gordon Technologies LLC for consideration of approximately $270 million, making Enersol the majority equity holder.

Separately, Adnoc announced recently the deployment of RoboWell, AIQ’s pioneering artificial intelligence (AI) autonomous well-control solution, in its operations at the offshore NASR field. This world-first offshore deployment of RoboWell highlights how Adnoc is leveraging advanced technologies to drive efficiencies and ensure a secure, reliable and responsible supply of energy.

Deployed in partnership with AIQ, the Abu Dhabi-based AI champion delivering transformative solutions to the energy sector, RoboWell uses cloud-based AI algorithms to autonomously operate wells that self-adjust according to changing conditions. This enhances the safe operation of the well, improves efficiency, reduces the need for travel and physical interventions, and so minimizes emissions.

Abdulmunim Saif Al Kindy, Adnoc Upstream Executive Director, said: “The offshore deployment of RoboWell at NASR field demonstrates how Adnoc is harnessing the power of AI as we responsibly meet growing global energy demand.”

“Adnoc’s aim is to become the world’s most AI-enabled energy company, integrating AI from the control room to the board room to maximise efficiency and move towards autonomous operations.” “Through our partnership with AIQ we are leveraging the UAE’s world-leading expertise in energy and AI to help transform the future of energy.”

Located 130 kilometers northwest of Abu Dhabi, NASR is a fully digital offshore field that uses a suite of technology solutions to maximize production and minimize emissions. RoboWell has been deployed across an initial 10 wells at NASR, with further deployment of the AI solution scheduled at over 300 wells across Adnoc’s offshore and onshore operations this year.

Dr. Chris Cooper, AIQ CEO, said, “AIQ leverages AI and machine learning solutions that unlock value across the entire value chain of the energy sector.

RoboWell has already been proven to deliver up to 30 per cent optimisation in gas lift consumption and up to 5 per cent increase in operating efficiency, so the expanded implementation of the solution represents a pivotal step for AIQ and Adnoc. By harnessing this leading-edge technology, we are enabling Adnoc to drive greater value from its resources and further optimize its operations.’’

RoboWell was developed by AIQ and Adnoc’s Thamama Excellence Center, a state-of-the-art hub that leverages big data, digitalisation and smart analytics to help access hydrocarbon resources and unlock greater value from existing reservoirs. RoboWell was first deployed in 2023 at the onshore NEB field, Adnoc’s first “smart field”, which has pioneered the implementation of industry-leading AI-enabled advanced technologies.