ADNOC Gas takes FID on Rich Gas Development project, awards $5bln contracts for Phase 1

Zawya

a day ago

ADNOC Gas announced on Tuesday that it has taken a Final Investment Decision (FID) and awarded $5 billion in contracts for the first phase of its Rich Gas Development (RGD) project.
The contracts involve expanding key processing units to increase throughput and improve operational efficiency across four ADNOC Gas Facilities: Asab, Buhasa, Habshan (Onshore), and the Das Island liquefaction facility (Offshore), the ADX-listed company said in a press statement.
The EPCM [Engineering, Procurement, Construction and Management] contracts have been awarded in three tranches for Phase 1. The first tranche, valued at $2.8 billion, has been awarded to UK-based Wood for the Habshan facility. The remaining two tranches – $1.2 billion for the Das Island liquefaction facility and $1.1 billion for the Asab and Buhasa facilities – have been awarded to the UK's Petrofac; and UAE-based Kent.
The press statement said the company intends to take FIDs on two additional phases of the RGD project at Habshan and Ruwais but didnt disclose timelines for the same.
Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said: 'The FID and contract awards for the first phase of the Rich Gas Development project mark a significant milestone in ADNOC Gas' strategy to deliver +40% EBITDA growth between 2023 and 2029."
The RGD project marks ADNOC Gas's largest-ever capital investment to date and will enable the development of new gas reservoirs, which are key to boosting liquid gas exports, supporting gas self-sufficiency in the UAE, and providing essential feedstock to the country's growing petrochemical industry, the statement noted.
In a separate statement, Petrofac said its scope for Das Island includes building a new inlet facility, two new gas dehydration and compression trains, each with a capacity of 420 million standard cubic feet per day (MMSCFD), and associated infrastructure, and upgrading existing facilities to increase the site's capacity for collecting and transporting raw natural gas.
Wood said in a stock exchange statement that its scope includes the delivery of substantial upgrades and debottlenecking solutions to the existing Habshan and Habshan 5 gas processing mega-complexes and pipelines, including brownfield modifications and the installation of new facilities, adding that the scope is due to complete at the end of 2027.
(Writing by SA Kader; Editing by Anoop Menon)