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Petrofac awards Habshan gas plant project sub-contract

23 October 2024

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UK-headquartered Petrofac has awarded a sub-contract for civil works for an Adnoc Gas project to boost gas output from the Habshan gas compressor plant.

Oman-headquartered Douglas OHI has won the sub-contract from Petrofac.

The project is package 2 of the UAE sales gas pipeline network enhancement project, Estidama.

The project client, Adnoc Gas, awarded Petrofac the main engineering, procurement and construction (EPC) contract for Estidama package 2, worth an estimated $720m, last July.

The scope of work on Estidama package 2 broadly involves building a new facility at the KP-30 location of the Habshan gas compressor plant and installing three variable frequency drive motor-driven compressors.

Estidama scheme

Adnoc Gas has made significant progress on the Estidama project, which will enhance Adnoc’s sales gas pipeline network across the UAE. The scheme aims to cater to the rising demand for gas from industrial consumers, particularly in the Northern Emirates.

Through the Estidama scheme, Adnoc Gas aims to extend the existing 3,200 kilometre (km) pipeline network to over 3,500km, enabling the transportation of higher volumes of natural gas to customers across the UAE.

EPC works on the estimated $2bn-plus Estidama project have been divided into seven packages.

China Petroleum Pipeline Engineering performed the Estidama project’s front-end engineering and design works as part of a contract worth about $6m that Adnoc Gas Processing awarded to the Chinese state-owned firm in October 2020.

MEED reported in December 2021 that Abu Dhabi-based contractor Integrated Specialised General Contracting Company (Iscco) had won package 1 of the project, which is understood to have a contract value of $18m. Iscco later sub-contracted the detailed engineering works on package 1 to the Abu Dhabi branch of Sweden-headquartered consultancy Rejlers.

In July 2023, Adnoc Gas awarded the EPC contracts for packages 2 and 3. While package 2 was awarded to Petrofac, a consortium of Abu Dhabi’s NMDC Energy and Lebanon-based CAT Group won package 3, valued at $630m.

Adnoc Gas then awarded contracts worth a total of $550m for combined packages 4 and 7, as well as for package 6, this July.

The UAE unit of Oman’s Galfar Engineering & Contracting won package 4+7. The value of the contract is understood to be about $295m.

NMDC Energy was awarded package 6. The contract's value is $255m, NMDC Energy’s parent company, NMDC Group, said in a filing with the Abu Dhabi Securities Exchange.

The main scope of work on Estidama package 4+7 involves laying a new pipeline from the Al-Shuwaib pig launcher and pig receiver station in Abu Dhabi to the Sajaa gas facility in the emirate of Sharjah.

The scope also covers building a new gas pipeline between BVS-2/KP28.7 in Abu Dhabi and Dubai’s Margham gas facility, to meet increased demand from Adnoc Gas’ customer Dubai Supply Authority (Dusup).

The EPC scope of work on Estidama package 6 entails installing a 52-inch, 74km pipeline from Sweihan to Al-Shuwaib in Abu Dhabi and building two block valve stations.

Separately, Adnoc Gas is evaluating bids it has received bids for packages 5 and 8 of the Estidama scheme.

The scope of work on Estidama package 5 involves EPC works to upgrade the Habshan gas processing complex.

The main scope of work on Estidama package 8 is to build a new pipeline that will transport gas as feedstock from the Habshan gas processing complex to its upcoming liquefied natural gas (LNG) terminal in Ruwais. The proposed pipeline will be built in two sections and will cover a distance of about 190km.

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Indrajit Sen

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