ADNOC Gas, a unit of the United Arab Emirates state-owned Abu Dhabi National Oil Co., approved the final investment decision this month for a large expansion of its key gas processing facilities. It also awarding a $3.9-billion EPC contract to Shanghai-based Wison Engineering for phase 2 development of the Habshan plant and a $4.3-billion contract to Italy-based MAIRE Group unit Tecnimont for Phase 3 work involving expansion of natural gas liquids processing at the Ruwais plant.
The Phase 2 facility will support plans for Phase 3 development of downstream and petrochemical product manufacturing at Ruwais, including expansion of an existing natural gas liquids plant, and construction of a new fractionation train and units for enhanced recovery of gas liquids such as propane, butane and condensate.
The expanded processing capacity stems from multiple oil and gas fields increasing volume. With the UAE no longer a member of the Organization of Petroleum Exporting Countries (OPEC) as of May 1, the company is not compelled to follow the group’s strict oil production limits and pricing rules.
ADNOC Gas last year awarded three engineering, procurement and construction contracts worth $5 billion for Phase 1 of the gas expansion to U.K. engineering firms Wood and Petrofac and Dubai-based Kent plc, covering expansion at Habshan and other production sites. ADNOC’s expanded oil and gas output and plans to change its marketing and transport methods are in response to changes in the Persian Gulf hydrocarbon industry caused by the U.S.-Iran war.
This latest development follows a final investment decision last month by ADNOC Gas to go forward with the offshore Umm Shaif Gas Cap Project, which is worth $6.2 billion.
ADNOC Gas is executing one of the largest gas growth programs in the industry, according to a report from TradeArabia. The company plans to invest $28 billion by 2030 to meet targeted growth, reinforce industrial development and spur economic diversification, the report said.
“This is a defining moment for ADNOC Gas,” company CEO Fatema Al Nuaimi said in announcing the new awards. Wwith the final investmnt decision and contract awards, the company is “accelerating one of the world’s largest gas-processing growth programs while expanding our natural gas processing and export capacity.»
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