Abu Dhabi National Oil Co. (ADNOC) subsidiary ADNOC Gas PLC has let a contract to a consortium of National Petroleum Construction Co. PJSC (NPCC) and Técnicas Reunidas SA for a project to expand gas processing infrastructure at the operator’s existing onshore installations in southwestern UAE’s Abu Dhabi Emirate.
As part of the $3.6-billion contract, the consortium will provide engineering procurement, construction, and commissioning (EPCC) services for new gas processing installations at ADNOC Gas’ multi-train gas processing complex at Habshan, Al Gharbia, that will enable optimized supply of feedstocks to ADNOC’s fully integrated, downstream Ruwais Industrial Complex (RIC) in Al Ruwais Industrial City, Al Dhafrah, ADNOC Gas said on Aug. 9.
Designed to increase ethane extraction capability at Habshan by 35-40% from current levels via construction of new gas processing units, the MERAM project also aims to unlock additional value from existing feedstock that will be delivered by a dedicated 120-km NGL pipeline to Ruwais, the operator said.
More than 70% of the contract award’s value will flow back into the UAE’s economy under ADNOC's In-Country Value (ICV) program created to support local economic growth and diversification, according to ADNOC Gas.
"This capital project represents ADNOC Gas’ latest investment in its gas processing infrastructure and underscores our commitment to responsibly meeting our customers’ current and future energy demand for natural gas and its feedstock,” Ahmed Mohamed Alebri, ADNOC Gas’ chief executive officer, said.
The Aug. 9 contract award NPCC and Técnicas Reunidas marks the start of the MERAM project’s formal execution phase previously scheduled to begin during second-quarter 2023, according to the operator latest quarterly earnings presentation to investors on May 11.
ADNOC Gas said the MERAM project—on which the company reached final investment decision during first-quarter 2023—is scheduled for commissioning during third-quarter 2025.
The MERAM project is one of several by ADNOC Gas included under ADNOC’s integrated gas masterplan, which intends to link every part of the UAE’s gas-value chain to ensure sustainable and economic gas supplies to meet domestic and international demand.
Alongside processing infrastructure, the gas masterplan also entails new approaches and technologies to boost gas recovery from existing fields, as well as develop untapped resources, ADNOC Gas said.
In May, Alebri said ADNOC Gas viewed structural demand growth for natural gas as a critical fuel in the responsible global energy transition as the company balances ongoing gas supplies to continue meeting demand while further decarbonizing operations in line with the UAE’s Net-Zero 2050 ambition.
In addition to MERAM, ADNOC Gas’ $14-billion, 5-year strategic and growth project portfolio for 2023-27 includes an expansion of its sales gas pipeline network by more than 500 km to beyond 3,500 km to better connect northern portions of the UAE (ESTIDAMA), as well as construction of a new gas processing installation that will add about 1.9 bcfd processing capacity to the company’s processing operations by 2028 at the earliest (OGJ Online, July 5, 2023; June 30, 2023).