ADNOC Gas has announced the award of $1.34 billion in contracts to Petrofac Emirates and the Consortium between National Petroleum Construction and C.A.T International for the expansion of its natural gas pipeline network.

Under the sales gas pipeline network enhancement (ESTIDAMA) program, the new pipeline will extend ADNOC Gas’ existing pipeline network from approximately 3,200 kilometers (km) to over 3,500km, allowing the transportation of higher volumes of natural gas to customers in the Northern emirates of the UAE.

As per the statement, “The ESTIDAMA program comprises several packages, with the first one awarded in 2021 for early modification works on existing pipelines and completed in 2023. The second and third packages, which are being awarded now, include the construction of new pipelines and a gas compression plant in Habshan that will help deliver essential feed gas to key customers across the Emirates.”

“Our strategic network expansion will bring the advantages of lower-cost, sustainable, and cleaner gas to more locations across the UAE by enhancing industrial access to natural gas, a cost-competitive and lower-carbon intensive fuel. The expanded pipeline will drive further growth for ADNOC Gas and our shareholders as we deliver on our mandate to achieve gas self-sufficiency for the UAE.”

This strategic pipeline extension will drive further growth for ADNOC Gas as it continues to supply sustainable gas supplies in the UAE to support the company’s strategy to increase its market share and enhance its customer base.

As part of ADNOC’s highly successful In-Country Value (ICV) program, which intends to improve the UAE’s local value chain by encouraging local manufacturing and supporting local industries, over 70 percent of the contracts’ value is expected to flow back into the UAE economy.

“ADNOC’s integrated gas masterplan connects all parts of the UAE’s gas value chain, ensuring a sustainable and economical natural gas supply to meet local and international demand. The plan includes innovative approaches and technologies to increase gas recovery from existing fields and develop untapped resources,” according to the statement.