ADNOC Gas Awards $2.1 Billion Contracts to Enhance LNG Supply Infrastructure
ADNOC Gas plc and its subsidiaries (collectively referred to as “ADNOC Gas” or the “Company”), a globally recognized integrated gas processing powerhouse, has announced the awarding of three strategic contracts valued at $2.1 billion. These contracts aim to advance infrastructure development critical to supporting the Ruwais LNG Project, a transformative initiative set to elevate ADNOC Gas’s liquefied natural gas (LNG) production capacity.
The contracts, integral to the Ruwais LNG Project’s success, cover the construction of an LNG pre-conditioning plant (LPP), new compression facilities, and transmission pipelines designed to ensure efficient feedstock supply. The investment represents a significant milestone in ADNOC Gas’s strategy to enhance its competitive edge in the global LNG market while adhering to sustainability principles.
Infrastructure Expansion: A Strategic Move
The newly awarded contracts will play a pivotal role in establishing the foundation for the Ruwais LNG Project. Central to these efforts is the Habshan Complex, one of the world’s largest integrated gas processing facilities, where the LPP and compression facilities will be situated. The complex comprises five plants with a combined capacity to process a staggering 6.1 billion standard cubic feet of gas per day, underscoring its critical role in ADNOC Gas’s supply chain.
The transmission pipelines, which will connect the Habshan Complex to the Ruwais LNG facility, are vital for ensuring seamless feedstock delivery. These pipelines will facilitate the flow of natural gas from the processing plants to the liquefaction trains at Ruwais, enabling increased LNG export capabilities.
Major Contract Award
- LNG Pre-Conditioning Plant (LPP) The largest contract, valued at $1.24 billion, has been awarded to a consortium comprising Engineering for the Petroleum and Process Industries (ENPPI) and Petrojet. The LPP will be a cornerstone of ADNOC Gas’s infrastructure, providing essential pre-conditioning of natural gas before liquefaction. This advanced facility will play a critical role in ensuring the efficiency and reliability of LNG production at Ruwais.
- Transmission Pipelines China Petroleum Pipeline Engineering Company has secured a $514 million contract to design and construct the new transmission pipelines. These pipelines are engineered to optimize the transportation of feedstock gas, ensuring a steady and reliable supply to the Ruwais facility. The inclusion of advanced technologies will enhance operational safety and minimize environmental impact.
- Compression Facilities Petrofac Emirates LLC has been awarded a $335 million contract to develop state-of-the-art compression facilities at the Habshan 5 plant. These facilities are designed to increase gas pressure, facilitating its transport through the pipelines to the Ruwais LNG site. Advanced digital tools and artificial intelligence (AI) will be integrated to boost efficiency and reduce emissions.
CEO Statement: A Vision for Sustainable Growt
Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, emphasized the strategic importance of these contracts. “These contract awards reaffirm ADNOC Gas’s commitment to delivering sustainable growth and maximizing shareholder value,” Al Nuaimi stated. “By investing in world-class infrastructure and innovative technologies, we are strengthening our capacity in LNG liquefaction and reinforcing our position as a global leader in the sector.”
Al Nuaimi further highlighted the alignment of these investments with ADNOC Gas’s broader objectives, which include expanding LNG capabilities while adhering to environmental, social, and governance (ESG) principles. “Our targeted investments enable us to address growing global energy demands while maintaining a strong focus on sustainability and operational excellence,” she added.
The Ruwais LNG Project: A Game-Changer
The Ruwais LNG Project is a flagship initiative for ADNOC Gas and is poised to redefine the company’s position in the global LNG landscape. Once operational in 2028, the facility will double ADNOC Gas’s current LNG production capacity to over 15 million tonnes per annum (mtpa). This expansion aligns with ADNOC Gas’s $15 billion capital expenditure (CAPEX) plan, spanning through 2029, as part of the company’s strategic roadmap.
The Ruwais LNG plant will feature two advanced liquefaction trains, each with a processing capacity of 4.8 mtpa. Powered by clean grid electricity, the facility represents a first-of-its-kind achievement in the Middle East and North Africa (MENA) region. By leveraging cutting-edge digital technologies and AI, the plant aims to achieve unparalleled efficiency and reduced carbon intensity, setting a benchmark for the industry.
Focus on Low-Carbon LNG Production
A key highlight of the Ruwais LNG Project is its commitment to sustainability. Upon completion, the facility will rank among the world’s lowest-carbon-intensity LNG plants. This achievement will be driven by innovative design elements, such as:
- Clean Grid Electricity: By utilizing electricity from renewable and low-carbon sources, the plant will significantly reduce its carbon footprint compared to conventional LNG facilities.
- Advanced Digital Technologies: The integration of AI and machine learning will enhance operational safety, optimize energy use, and minimize emissions.
- Efficient Infrastructure Design: The plant’s state-of-the-art infrastructure will maximize energy efficiency while maintaining the highest safety standards.
Economic and Global Impacts
The development of the Ruwais LNG Project is expected to have far-reaching economic and global implications. Domestically, the project will generate significant employment opportunities, contributing to the UAE’s economic diversification efforts. Additionally, it will create a robust supply chain ecosystem, benefiting local and international contractors and suppliers.
Globally, the increased LNG production capacity will bolster ADNOC Gas’s ability to meet rising energy demands in international markets. LNG is widely regarded as a transition fuel, offering a cleaner alternative to coal and oil while supporting global decarbonization goals. By expanding its LNG capabilities, ADNOC Gas is strategically positioning itself to address the evolving energy landscape and support global efforts to combat climate change.
ADNOC Gas: A Commitment to Excellence
ADNOC Gas’s announcement of these contracts underscores its unwavering commitment to innovation, sustainability, and excellence. The company’s integrated approach to gas processing, from extraction to export, positions it as a leader in the global energy sector. By investing in advanced technologies and world-class infrastructure, ADNOC Gas is not only meeting today’s energy needs but also shaping the future of the industry.
The Ruwais LNG Project exemplifies ADNOC Gas’s vision of driving sustainable growth while delivering value to shareholders and stakeholders alike. Through targeted investments and strategic partnerships, the company is paving the way for a cleaner, more efficient energy future.
