Abu Dhabi National Oil Company (ADNOC) announced the award of a US$548 million (AED2.01 billion) contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi.

The Engineering, Procurement and Construction (EPC) contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process.

The award will increase the Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), supporting ADNOC’s plans to enable gas self-sufficiency for the UAE and cater to increasing global energy demand.

The new pipeline will cater to the increased volume of associated gas produced by the Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025.

The project will be completed in 2025 and it will see the construction of a new subsea pipeline that will run 85 kilometres from Zakum West Super Complex to Das Island. It also includes provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.

ADNOC’s gas masterplan links every part of the gas value chain to further unlock Abu Dhabi’s abundant gas reserves enabling domestic gas self-sufficiency, industrial growth, and diversification, as well as meeting growing global gas demand. Natural gas is playing an increasingly important role in the energy transition as both a feedstock and a fuel as it burns with significantly lower-carbon intensity than coal.

With this award, ADNOC Offshore and its strategic international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi’s offshore operations. The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities and a $1.1 billion contract awarded to ADNOC Logistics and Services to enhance offshore operations, statement mentioned.