ADNOC Gas awards $550 million contracts to expand UAE gas infrastructure

ADNOC Gas has awarded engineering, procurement and construction (EPC) contracts for the next phase of the UAE sales gas pipeline network enhancement "ESTIDAMA Project."

The EPC contracts are worth a combined $550 million (AED 2 billion) and were awarded to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates.

Separately, ownership of ESTIDAMA is being transferred from ADNOC Gas to ADNOC, significantly optimising ADNOC Gas' capital efficiency.

Approximately 70% of the contracts' value is expected to flow back into the UAE economy through ADNOC's In-Country Value (ICV) programme, supporting local economic growth and diversification.

ESTIDAMA will extend the UAE's natural gas pipeline network operated by ADNOC Gas from approximately 3,200 kilometres to over 3,500 kilometres, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE.

Following the ownership transfer, ADNOC Gas will continue to manage ESTIDAMA, leveraging its expertise in construction and pipeline operations, with ADNOC covering the capital expenditures for this critical infrastructure project.

ADNOC Gas will continue to expand its domestic business through ESTIDAMA, paying ADNOC a variable transmission fee for actual throughput of the pipeline. ADNOC Gas will also be paid to operate and maintain ESTIDAMA on behalf of ADNOC.