ADNOC Gas has awarded engineering, procurement, and construction (EPC) contracts worth $550 million for the next phase of the UAE sales gas pipeline network enhancement ESTIDAMA Project.
Additionally, ownership of ESTIDAMA is being transferred from ADNOC Gas to ADNOC, enhancing the ADX-listed group’s capital efficiency.
The EPC contracts, valued at a combined $550 million (AED2 billion), were awarded to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates.
Around 70% of the contract value is expected to benefit the UAE economy through ADNOC’s In-Country Value (ICV) program, promoting local economic growth and diversification.
The ESTIDAMA project will expand the country’s natural gas pipeline network, operated by ADNOC Gas, from approximately 3,200 kilometers to over 3,500 kilometers.
This will allow the transportation of larger volumes of natural gas to customers in the Northern Emirates.
Despite the transfer of ownership, ADNOC Gas will continue to manage ESTIDAMA, utilizing its construction and pipeline operations expertise, while ADNOC will cover the capital expenditures for this crucial infrastructure project.
Ahmed Alebri, CEO of ADNOC Gas, said: “This award supports the ongoing expansion of the UAE’s gas pipeline network, which will bring lower-cost and sustainable natural gas to more locations across the country.”
“We are proud to play a leading role in meeting the growing demand for gas across the country and enabling the UAE’s goal of gas self-sufficiency,” Alebri continued.
“With the transfer of ownership of the ESTIDAMA Project to ADNOC, ADNOC Gas will continue to benefit from the expansion of the pipeline networks, while improving our capital efficiency to ensure that we maximize value for our shareholders.”
The Egyptian government recently announced a significant collaboration with the Gulf nation to add approximately 4 gigawatts (GW) of renewable energy to Egypt’s national power grid, starting in the upcoming summer.
This initiative aims to enhance Egypt’s renewable energy capabilities and address the country’s growing energy demands.
