Gasco lets contract for Habshan-Ruwais-Shuweihat gas line

Abu Dhabi Gas Industries Ltd. (Gasco) has let a lump-sum, turnkey contract to Larsen & Toubro Ltd. for the engineering, procurement, construction, and commissioning for the 122-km Habshan-Ruwais-Shuweihat natural gas pipeline.

The project aims to supply gas to the new refinery expansion by Takreer, the refining arm of Abu Dhabi National Oil Co., which is more than doubling the capacity of its Ruwais facility to 817,000 b/d from the current 350,000 b/d.

Additionally, the pipeline expansion aims to supply gas to a power complex belonging to Abu Dhabi Water & Electricity Authority at Shuweihat, west of Ruwais.

The line will range in diameter. It will be 52-in. pipe between Habshan and Ruwais and 48-in. pipe between Ruwais and Shuweihat.

Gasco said construction of the line to Ruwais will take 24 months followed by 26 months for the line to Shuweihat. The front-end engineering and design for the project was completed early this year, Gasco said.

Gasco is working with Abu Dhabi Gas Liquefaction Co. Ltd. to develop a facility at Habshan oil field, called Habshan-5.

The project is based on a facility at Habshan that will produce 900 MMcfd of gas and 124,800 b/d of NGLs.

The pipeline project, which will transport gas from Habshan, is considered an essential component of government plans to diversify the country’s economy away from oil by providing additional supplies of gas to the growing domestic market.

Abu Dhabi’s domestic market currently consumes 2.3 bscfd of gas, with electric power production representing almost 60% of the country’s total gas consumption and the rest going to industry. Gas represents almost 99.8% of the fuel mix in electric power generation, which increased 13% in 2008.

Gas demand for power generation is expected to increase at an average growth rate of 8-9%/year during 2008-20. Demand also is increasing rapidly as a result of the expanding local, petrochemical, and industrial projects (OGJ Online, Oct. 1, 2009).

Gasco is a consortium comprised of ADNOC, Royal Dutch Shell PLC, Total SA, and Partex.

Contact Eric Watkins at hippalus@yahoo.com.

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