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New project to expand UAE gas network at a cost of 2 billion dirhams

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These contracts will contribute to redirecting approximately 70% of their value back into the local economy through ADNOC’s National Content Enhancement Program.

ADNOC Gas announced today that Engineering and Procurement Contracts Awarded Construction (Engineering and Construction) to implement the remaining phases of the Sustainability Project to expand the pipeline network Natural gas In the United Arab Emirates.

The contracts, with a total value of AED 2 billion (US$ 550 million), were awarded to:

  • National Marine Dredging Group
  • Galfar Engineering & Contracting company

These contracts will contribute to redirecting approximately 70% of their value to the UAE’s local economy through ADNOC’s National Content Enhancement Program, in order to support and diversify local economic growth.

The “Sustainability” project aims to increase the length of the natural gas pipeline network operated by the company from 3,200 kilometers to more than 3,500 kilometers.

This will enable the transportation of larger quantities of natural gas to customers in the Northern Emirates, while ensuring energy security and sustainability and promoting economic growth across the country.

Following the completion of the transfer of ownership of the “Sustainability” project to ADNOC, ADNOC Gas will continue to manage and operate the project, benefiting from its extensive experience in the field of pipeline construction and management.

ADNOC will cover all capital expenditure for this vital infrastructure project.

Dr. Ahmed Mohamed Al-Abri, CEO of ADNOC Gas, said: “Transferring the ownership of the “Sustainability” project to ADNOC will enable the company to benefit from the expansion of the pipeline network and improve the efficiency of capital expenditure to achieve maximum value for its shareholders.”

ADNOC Gas will complete the implementation of the Sustainability Project as it commits to expanding its operations within the country.

The company will pay a variable transportation fee to ADNOC for the actual production of the line.

ADNOC Gas will also receive a fee for managing and maintaining the project on behalf of ADNOC.

 

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