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Contractors submit bids for Shah gas expansion project

14 May 2025

Contractors have submitted bids for engineering, procurement and construction (EPC) works on a major Adnoc Sour Gas project to expand the Shah gas plant in Abu Dhabi.

The project supports the goal of Adnoc Sour Gas, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), to increase the sour gas processing capacity of the Shah gas plant to 1.85 billion cubic feet a day (cf/d).

Adnoc Sour Gas received technical bids for the Shah gas plant expansion project from contractors by the deadline of 13 May, according to sources.

The following contractors, among others, are understood to have submitted bids for the project, sources told MEED:

  • China Petroleum Engineering & Construction Company
  • Petrofac (UK)
  • Saipem (Italy) / Samsung E&A (South Korea)
  • Tecnimont (Italy)

Adnoc Sour Gas is understood to have issued the main EPC tender for the Shah gas plant expansion project in December.

Adnoc Sour Gas initially planned to execute the project using the feed-to-EPC model. This process requires the operator to shortlist contractors for the project’s front-end engineering and design (feed) work, with the firm that submits the best feed proposal being awarded the contract for the EPC works.

Contractors expressed interest in participating in the feed-to-EPC competition for the Shah gas plant expansion project in September 2023.

Adnoc Sour Gas subsequently cancelled the feed-to-EPC competition model for the project and later opted for the conventional project execution model, according to sources. A fresh feed tender for the project was issued “during the last quarter” of 2023, sources said at the time.

MEED previously reported that UK-headquartered Wood Group had won the project’s feed work contract in January 2024.

Shah gas plant expansion

The Shah gas plant, located 210 kilometres southwest of the city of Abu Dhabi, came online in 2015 with a processing capacity of 1.28 billion cf/d.

The facility draws associated gas produced from the onshore Shah oil field, which has an output capacity of 70,000 barrels a day. In January, Adnoc announced that the Shah field had achieved a carbon intensity of 0.1 kilogrammes of carbon dioxide (CO2) equivalent per barrel of oil equivalent.

The field reached this milestone through optimised field development and deploying digitalisation, artificial intelligence (AI) and other technologies to maximise efficiencies and minimise emissions. The field also benefits from Adnoc’s electrification of its onshore assets, which are powered by nuclear and solar energy sources.

To increase the Shah gas plant’s output to a potential 1.45 billion cf/d, Adnoc Sour Gas undertook the Optimum Shah Gas Expansion (OGSE) project in 2021. Italian contractor Saipem was awarded a $510m contract in June of that year to execute EPC works on the project. The OGSE project is now in the commissioning stage.

Adnoc Sour Gas expects to raise the asset’s production potential to 1.85 billion cf/d through the Shah gas plant expansion project.

Shah gas plant CO2 recovery

Last year, Adnoc Sour Gas undertook a project to capture and transport CO2 emissions from the facility’s operations.

The project aimed to recover, dehydrate, compress and transport CO2 from the Shah gas plant’s operations to the Bab onshore oil field for enhanced oil recovery (EOR).

However, Adnoc Sour Gas suspended the Shah gas plant CO2 recovery project, with sources expecting it could be revived this year.

The Shah gas plant CO2 recovery project is projected to deliver up to 1.37 billion cf/d of CO2 with a 95.5 mole percentage. The CO2 recovery facilities are to be designed for a target availability of 95%, with less than 400 parts per million by volume hydrogen sulphide and less than 20 pounds of water per million cubic feet a day.

The recovered CO2 will be supplied through an approximately 125-kilometre pipeline to the Bab field for re-injection into the wells at 210-barg pressure for EOR purposes.

Adnoc Sour Gas has stipulated the use of Shell’s Cansolv CO2 capture licensed technology by the EPC contractor for the project.

Adnoc Sour Gas production

Adnoc Sour Gas, in which Adnoc Group holds the majority 60% stake and US energy company Occidental Petroleum (Oxy) holds the other 40%, currently produces 1.28 billion cf/d of gas and 4.2 million tonnes a year of sulphur from the Shah onshore sour gas field.

The Shah gas production complex in Abu Dhabi is understood to be the world’s largest ultra-sour gas facility. It includes gas processing units and a sulphur granulation plant that features four of the largest sulphur recovery units in the world.

Adnoc Sour Gas processes more than 1 billion cf/d of ultra-sour gas, with a hydrogen sulphide content of more than 23%, from a single, integrated field-gas plant development. The company accounts for about 5% of global production.

About 17,000 tonnes of granulated sulphur produced by Adnoc Sour Gas from the Shah and Habshan fields are transported by Etihad Rail to Adnoc’s Ruwais terminal a day. From there, it is exported to markets worldwide for use in fertiliser manufacturing.

Adnoc Sour Gas also produces condensates, ethane and natural gas liquids. All products, except sulphur, are delivered to Adnoc Group companies for further processing or distribution to domestic consumers.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13879229/main5034.jpg
Indrajit Sen

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