ADNOC Gas has awarded the engineering, procurement, and construction (EPC) contracts for the next phase of the UAE sales gas pipeline network enhancement ‘ESTIDAMA Project’.
According to the statement, “Separately, ownership of ESTIDAMA is being transferred from ADNOC Gas to ADNOC, thereby significantly optimizing ADNOC Gas’ capital efficiency.”
The EPC contracts are worth a combined $550 million (AED2 billion) and were awarded to NMDC Energy and Galfar Engineering & Contracting W.L.L Emirates.
Around 70 percent of the contract’s total value is projected to be reinvested into the UAE economy under ADNOC’s In-Country Value (ICV) program, contributing to local economic expansion and diversification efforts.
Ahmed Alebri CEO – ADNOC Gas
“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. 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.”
ESTIDAMA will extend the UAE’s natural gas pipeline network operated by ADNOC Gas from approximately 3,200 kilometers to over 3,500 kilometers, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE.
After the ownership transfer, ADNOC Gas will retain management of ESTIDAMA, utilizing its expertise in construction and pipeline operations. ADNOC will also cover the capital expenditures for this crucial infrastructure project.
ADNOC Gas will continue to expand its domestic business through ESTIDAMA, paying ADNOC a variable transmission fee for the actual throughput of the pipeline. ADNOC Gas will also be paid to operate and maintain ESTIDAMA on behalf of ADNOC, as per the statement.
