ADNOC Gas, along with its subsidiaries, has announced the awarding of three major contracts worth $2.1bn.
These contracts aim to establish critical infrastructure, including a liquefied natural gas (LNG) pre-conditioning plant (LPP), compression facilities, and transmission pipelines, to supply feedstock to the Ruwais LNG Project.
The LPP and compression facilities will be located at ADNOC Gas’ Habshan 5 plant, part of the larger Habshan Complex, one of the world’s largest integrated gas processing facilities.
The complex, consisting of five plants, has a combined processing capacity of 6.1 billion standard cubic feet of gas per day. The newly awarded transmission pipelines will connect the Habshan Complex to the Ruwais LNG facility.
The $1.24bn LNG Pre-conditioning Plant (LPP) contract was awarded to a consortium comprising Engineering for the Petroleum and Process Industries (ENPPI) and Petrojet, while the China Petroleum Pipeline Engineering Company received a $514m contract for developing the pipelines.
Petrofac Emirates secured a $335m contract to construct the new compression facilities.
ADNOC Gas CEO Fatema Al Nuaimi said: “These contract awards reaffirm ADNOC Gas’ commitment to delivering sustainable growth and maximising shareholder value. We are investing in world-class infrastructure and innovative technologies as we expand our capacity in LNG liquefaction and strengthen our position as a global player.”
These contracts form part of ADNOC Gas’ strategy to establish essential infrastructure for the Ruwais LNG Project, which is being developed on behalf of the Company’s largest shareholder, ADNOC.
The capital expenditure (CAPEX) for these projects is separate from the costs outlined for ADNOC Gas’ planned acquisition of ADNOC’s majority stake in the Ruwais LNG Project, anticipated to become operational in 2028.
This investment aligns with ADNOC Gas’ $15bn CAPEX plan through 2029, as highlighted in the Company’s recent strategic update.
The new infrastructure will support the Ruwais LNG export facility, which is set to more than double ADNOC Gas’ LNG production capacity, increasing it to over 15 million tonnes per annum (mtpa).
The Ruwais LNG plant will feature two liquefaction trains, each with a processing capacity of 4.8 mtpa. The facility will be powered by clean grid electricity, a first for LNG operations in the Middle East and North Africa (MENA) region.
Upon completion, the Ruwais LNG plant aims to be one of the world’s lowest-carbon intensity LNG facilities.
