Adnoc spurs downstream gas expansions
13 October 2023
This package on the UAE’s downstream sector also includes:
> Adnoc Gas picks site for planned LNG terminal
> Adnoc Gas receives prices for Estidama package
> Adnoc and Dusup sign key gas supply agreement
> Adnoc receives bids for gas pipeline packages
> Adnoc receives prices for sales gas pipeline packages
> Adnoc Gas awards $3.6bn Project Meram contract

Demand for natural gas has risen exponentially in this decade, with its share in the global energy mix set to grow further in the decades to come.
Regional energy producers are deploying major capital expenditure programmes to increase their gas production and processing capabilities to cater to growing demand.
The UAE is striving to achieve self-sufficiency in gas production by 2030. With this objective in mind, Abu Dhabi National Oil Company (Adnoc) has committed significant investment towards expanding its midstream and downstream gas capabilities.
These projects seek to increase the availability of gas for utility providers and industrial customers in the UAE and ramp up ethane output to grow the country’s petrochemical sector and its derivatives ecosystem.
Hail and Ghasha galvanises UAE upstream market
Ruwais LNG project
Adnoc Gas, the gas processing business of Adnoc, has finalised the location for its planned liquefied natural gas (LNG) export terminal. The facility will have the capacity to produce about 9.6 million tonnes a year (t/y) of LNG from two processing trains, each with a capacity of 4.8 million t/y.
The overall value of the planned project is estimated to be upwards of $4.5bn, based on capital expenditure by operators on similar schemes worldwide.
Adnoc Gas received technical bids from contractors in May for the engineering, procurement and construction (EPC) works on the project, which will be built in Ruwais Industrial City in Abu Dhabi’s Al-Dhafrah region.
Adnoc Gas had originally planned to build the LNG terminal in the UAE emirate of Fujairah, which sits outside the Strait of Hormuz on the coast of the Gulf of Oman. In early May, however, the company announced it was shifting the location of the project from Fujairah to Ruwais, Abu Dhabi.
Sales gas pipeline network
Adnoc Gas is progressing the Estidama project, which is crucial to enhancing Adnoc’s sales gas pipeline network across the UAE. The project aims to cater to rising demand for gas from industrial consumers across the UAE, particularly in the Northern Emirates.
Contractors submitted commercial bids in August for combined package numbers 4 and 7. The combined package involves laying a new pipeline from the Al-Shuwaib pig launcher and pig receiver station to the Sajaa gas facility in Sharjah.
The scope also covers building a new gas pipeline between BVS-2/KP28.7 in Abu Dhabi to Dubai’s Margham gas facility to meet increased gas demand from Adnoc Gas’ customer Dubai Supply Authority (Dusup).
EPC works on the estimated $2bn-plus Estidama project have been divided into seven packages. Abu Dhabi-based contractor Integrated Specialised General Contracting Company (Iscco) won package 1, understood to have a contract value of $18m, in December 2021.
In early July, Adnoc Gas awarded contracts worth a combined $1.34bn for two other packages of the Estidama project. UK-headquartered Petrofac was awarded the EPC contract for package 2 of the Estidama project, estimated to be worth $720m.
A consortium of Abu Dhabi’s National Petroleum Construction Company (NPCC) and Lebanon-headquartered CAT Group won Estidama package 3, which is valued at about $630m.
Contractors submitted technical bids for package 6 in August 2022 and commercial bids by 21 November. Work on package 6 entails the installation of a 52-inch, 74-kilometre pipeline from Sweihan to Al-Shuwaib in Abu Dhabi and building two block valve stations.
Package 5 is expected to be tendered separately to contractors as part of a planned second phase of the sales gas pipeline upgrade project.
As per the original project schedule, EPC works on the Estidama project are due to be completed in 2025.
Ramping up ethane output
Adnoc Gas is in charge of one of the world’s largest gas processing complexes in Abu Dhabi, with the capacity to process about 8 billion cubic feet a day from its Asab, Bab, Bu Hasa, Habshan and Ruwais plants.
Increased volumes of ethane production will allow the company to commercialise it to supply feedstock to Borouge for its under-construction Borouge 4 petrochemicals complex, as well as to derivatives plants in the upcoming Taziz complex. Adnoc Gas intends to achieve this through the Maximise Ethane Recovery & Monetisation (Meram) project.
Adnoc Gas awarded a $3.6bn contract for Project Meram to a consortium of NPCC and Spanish contractor Tecnicas Reunidas in early August, with EPC work on the project starting later that month. The scope of work on the contract includes commissioning new gas processing facilities to enable an optimised supply to the Ruwais industrial complex, Adnoc Group said.
The strategic Meram project aims to achieve dual objectives, Adnoc stated.
The first goal is to increase ethane extraction by 35 to 40 per cent from Adnoc Gas’ existing onshore facilities in the Habshan gas processing complex by constructing new gas processing facilities.
The second goal is to unlock further value from existing feedstock and deliver it to Ruwais via a 120km natural gas liquids (NGL) pipeline.
LATEST NEWS FROM THE UAE's CHEMICALS SECTOR:
> Lummus seeks to expand Abu Dhabi office
> Firms express interest for Abu Dhabi methanol project
> Borouge and Borealis launch recycled products range
> Fertiglobe makes $84m profit in second quarter
> Borouge announces $231m profit in second quarter
> Adnoc opens formal chemicals integration talks with OMV
Taziz chemicals complex
Meanwhile, investors in the Taziz petrochemicals derivatives-producing industrial complex in Ruwais are pushing ahead with their projects.
Taziz – a 60:40 joint venture (JV) of Adnoc and Abu Dhabi’s industrial holding company ADQ – is overseeing the development of the sprawling industrial complex, which will mainly draw ethylene feedstock from the Borouge 4 facility to produce several in-demand chemicals.
A JV of UAE-based Fertiglobe, South Korea’s GS Energy and Japanese investment firm Mitsui awarded Italian contractor Tecnimont the main EPC contract for its planned blue ammonia project in the Taziz Industrial Chemicals Zone in February.
The JV has appointed KBR to provide the technology licence, basic engineering design, proprietary equipment and catalyst for the low-carbon ammonia plant, which will have a capacity of 1 million t/y.
India’s Reliance Industries is also an investor in the Taziz complex, having forged a partnership with Taziz and Abu Dhabi-based Shaheen Chem Holdings Investment to invest $2bn in developing three chemical plants producing chlor-alkali (940,000 t/y), ethylene dichloride (1.1 million t/y) and polyvinyl chloride (360,000 t/y).
Switzerland-based Proman has committed to building the UAE’s first methanol plant at Taziz, with a planned production capacity of 1.8 million t/y. The Proman-Taziz JV completed the contractor prequalification process for the EPC tendering round for the methanol production project in August. The operator is expected to issue the main EPC tender later this year.
As projects in the first phase of the chemicals complex move forward, Taziz is also understood to be gearing up for a second phase to more than double the number of chemicals produced at the derivatives hub.
Exclusive from Meed
-
Firms announce 129MW Dubai data centre24 April 2026
-
Iraq signs upstream oil contract24 April 2026
-
Jordan tenders oil and gas terminal project24 April 2026
-
Decision imminent on Dubai sewerage tunnel contracts24 April 2026
-
Dubai scales up its metro ambitions23 April 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Firms announce 129MW Dubai data centre24 April 2026
Dubai’s Integrated Economic Zones Authority (DIEZ) has signed a joint-venture agreement with Netherlands-headquartered data centre developer Volt to build a new artificial intelligence (AI)-ready data centre in the emirate.
Planned for Dubai Silicon Oasis, the development will take the form of a campus covering up to 60,000 square metres.
The project will be delivered in two phases, starting with 29MW of immediately available capacity, followed by a second phase adding a further 100MW of committed power.
Under the arrangement, DIEZ will supply the land and essential infrastructure, while Volt will finance and develop the project, lead construction, and manage the design, leasing, implementation and day-to-day operations.
French firm Schneider Electric, which has its regional headquarters in Dubai Silicon Oasis, will support the development by supplying advanced electrical systems, power distribution capabilities and smart data centre infrastructure.
The GCC currently has more than 174 active data centre projects, representing over $93bn in investment, led by international players such as AWS, Google and Huawei, alongside regional developers including Khazna and Moro, supported by government-led localisation strategies.
More than a dozen large-scale facilities valued at over $100m each are currently under tender, with further packages expected to reach the market over the next six to 12 months.
The UAE is one of the leading data centre markets, with hyperscale campuses, sovereign cloud initiatives and edge data centre deployments underway.
Data centre development is closely aligned with the UAE’s digital economy and AI roadmap, as well as the wider smart city programme.
Priorities include hyperscale and colocation facilities to support cloud service providers; edge data centres to reduce latency and enable 5G and IoT use cases; energy-efficient designs using advanced cooling, modular construction and renewables; and strategic partnerships between global hyperscalers, local developers and utilities.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16548972/main.JPG -
Iraq signs upstream oil contract24 April 2026
State-owned Iraqi Drilling Company (IDC) has signed a contract with China’s EBS Petroleum for a project to drill 17 horizontal wells in the southeastern portion of the East Baghdad field.
Mohamed Hantoush, the general manager of IDC, said the contract signing came after a “series of successful achievements” by the company at the field.
The achievements included the completion of a project to drill 27 horizontal wells and another project to drill 18 horizontal wells, according to a statement released by Iraq’s Ministry of Oil.
In January, Iraq’s Midland Oil Company (MOC), in collaboration with EBS Petroleum, completed the country’s longest horizontal oil well in the southern part of the East Baghdad field.
The well, which was called EBMK-8-1H, reached a total depth of 6,320 metres, and had a 3,535-metre horizontal section, making it the country’s largest horizontal well ever drilled.
Senior officials from the Iraqi Oil Ministry and representatives of EBS Petroleum attended the well’s completion ceremony.
EBS Petroleum is a subsidiary of China’s ZhenHua Oil, which is focused on Iraq.
ZhenHua Oil is the operator of the field and is working with Iraqi partners to oversee the field’s development.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16543675/main4942.jpg -
Jordan tenders oil and gas terminal project24 April 2026

Jordan’s Aqaba Development Corporation (ADC) has tendered a project for the development of the facilities at the Aqaba Oil and Gas Terminal.
The project has been divided into two packages, and a bid deadline has been set for 15 June 2026.
The oil and gas terminal is located south of the city of Aqaba in Jordan’s Southern Industrial Zone.
The scope of Package 1 includes:
- Rehabilitation of petroleum product pipelines of various sizes and their accessories (such as supports, structures and valves), including rectification of painting defects
- Inspection and repair of pipe welds
- Rectification and overall maintenance of the product booster pump
- Inspection, maintenance, testing and commissioning of liquefied petroleum gas (LPG) booster pumps
- Rectification of two overhead cranes
- Rectification and calibration of instrumentation, including pressure indicators and valves
The scope of Package 2 includes:
- Rehabilitation of control rooms and security rooms, replacing them with concrete control rooms, including infrastructure works and all required services
- Removal of unused tanks and equipment previously used for exporting crude oil
- Rehabilitation of the existing gate in order to improve safety and security with the installation of a tire killer
- Carrying out maintenance and repairs for the oil berth dolphins and trestle with inspection
- Maintenance, repair and reinstallation of oil berth concrete slabs
- Removal and extension of the jetty platform
- Installation of a lighting system at pipelines beside booster pumps
- Installation of stripping pumps at the LPG terminal
- Replacement of drain line path for slop tank of LPG booster pumps
- Rehabilitation of the existing closed drain drum
- Rectification of cone sealing issue of all truck loading arms
- Conversion of manual valves to motor-operated valves
- Remote operation of shut-off valves on the main pipeline alongside and near the entrance gate
- Upgrading of the firefighting system
The last date for questions and clarifications related to the project will be 13 May 2026.
The Aquaba Oil and Gas Terminal was built to meet demand for petroleum products and LPG imports into Jordan.
It is operated by state-owned Jordan Oil Terminals Company (JOTC), which was established in 2015 as a private shareholding company.
Earlier this year, Abu Dhabi’s AD Ports Group signed an agreement with ADC to manage and operate the Aqaba multipurpose port.
AD Ports is managing and operating the port under a 30-year concession agreement.
Under the agreement, AD Ports and ADC will establish a joint venture to oversee port operations.
AD Ports will hold a 70% stake in the joint venture, with the remaining 30% held by ADC.
AD Ports Group will also invest AED141m ($38.4m) in the joint venture.
The signing ceremony was held at the Aqaba Special Economic Zone Authority headquarters in Aqaba on 5 February.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16543632/main.jpg -
Decision imminent on Dubai sewerage tunnel contracts24 April 2026

A final decision on the first two packages of the flagship Dubai Strategic Sewerage Tunnels (DSST) project is imminent, with two remaining bidders having submitted best and final offers.
The AED80bn ($22bn) public-private partnership (PPP) scheme comprises three packages: J, W and Links.
According to a source, two consortiums led by Etihad Water & Electricity (UAE) and Vision Invest (Saudi Arabia) were recently invited to submit final bids for packages J and W, which were tendered last November.
The winning consortium is expected to be formally confirmed in the coming weeks once the required approval process is completed, the source said.
MEED had previously reported that three consortiums were bidding for the project, which is being procured by Dubai Municipality’s sewerage and recycled water projects department.
These included:
- Consortium 1: Led by Plenary Group (Australia) alongside Itochu (Japan) and Infrastructure Holding (UAE)
- Consortium 2: Led by Vision Invest (Saudi Arabia) alongside Suez Water Company (France)
- Consortium 3: Led by Etihad Water & Electricity (UAE) alongside Tamasuk Holding (Saudi Arabia) and Alkhorayef Water & Power (Saudi Arabia)
It is understood that the consortium led by Pleneray Group has since been dropped from consideration for the contract.
As MEED previously reported, the bid packages include equity partners, an appointed operator and a construction contractor.
Of the bidders still in contention, MEED understands that Vision Invest plans to act as operator for that consortium, while Suez will lead construction.
In the other consortium, EtihadWE plans to take the operator role, with construction led by France’s Veolia.
Large-scale sewerage network
The DSST masterplan project covers the construction of two sets of deep tunnels terminating at pump stations at Warsan and Jebel Ali Sewage Treatment Plants (STPs). It also includes over 200 kilometres of sewer links.
Construction work was previously categorised in multiple packages under the Warsan Strategic Tunnel Scheme (Package W) and the Jebel Ali Strategic Sewerage Scheme (J1 North, J2 South, J3 Jebel Ali Links).
These packages have now been restructured and renamed.
The bid submission deadline for the third 'Phase 2 Links' package, meanwhile, was recently extended.
The new deadline is June 30.
The three packages are being procured under 30-year design, build, finance, operate and maintain concession models.
The DSST project aims to convert Dubai’s sewerage system from a pumped network to a gravity-based system, enabling the emirate to replace existing sewage pumping stations and meet long-term capacity needs.
The programme also marks the first time the municipality will implement In-Country Value (ICV), a local content programme that promotes economic benefits.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16536060/main.jpg -
Dubai scales up its metro ambitions23 April 2026

Dubai’s rail sector has rarely seen such a concentrated burst of procurement activity as it has in the past year.
Within the space of a few months, Dubai’s Roads & Transport Authority (RTA) has moved simultaneously on three distinct fronts: tendering design consultancy for the Route 2020 extension that will connect the Expo 2020 metro station to Al-Maktoum International airport; inviting study-and-design bids for a 55-kilometre Airport Express Line linking Dubai International airport to Al-Maktoum International airport; and culminating in Dubai Ruler Sheikh Mohammed Bin Rashid Al-Maktoum’s approval of the AED34bn ($9.2bn) Gold Line, a 42km fully underground route that the emirate is calling the largest transportation project in its history.
These projects form a key part of the Dubai Rail Network Plan 2032, which outlines the development of six public transportation schemes comprising a mix of metro, passenger and high-speed rail lines.
The most prominent feature of the plan is the addition of new lines to Dubai Metro’s existing network, representing a systematic effort to support the shift of Dubai’s economic centre of gravity towards Dubai South and the vast development corridors in between.
The city is also seeking to stay ahead of the curve by investing heavily in infrastructure. Data from regional projects tracker MEED Projects shows that the emirate has awarded over $14bn-worth of transport projects in the past two years alone, with several other multibillion-dollar schemes still moving through the planning stages.
All of this work is being carried out in line with the Dubai 2040 Urban Master Plan, which forecasts the emirate’s population will reach 5.8 million by 2040 – a clear indication of the scale of daily movement the city must accommodate.
Project progress
Dubai Metro Gold Line
On 21 April, Sheikh Mohammed officially announced the launch of the new AED34bn ($9.2bn) Gold Line project.
The line will be a fully underground network spanning over 42 kilometres, with 18 stations.
It will run from Al-Ghubaiba in Bur Dubai to Jumeirah Golf Estates.
The Gold Line will connect with Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger network.
In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the project.
Stage one covers concept design; stage two, preliminary design; stage three, preparation of tender documents; stage four, construction supervision; and stage five, the defects liability period.
Airport Express Line
Procurement has started for another metro line extending from Dubai International airport (DXB) in Al-Garhoud to Al-Maktoum International airport (DWC) in Jebel Ali.
Earlier this month, the RTA invited consultants to bid for a contract to study and design what is referred to as the Airport Express Line.
The proposed line will stretch about 55km and include five stations that will provide passengers with facilities such as remote airline check-in, baggage drop-off and security screening.
The new line will run from the Red Line metro station at DXB through Al-Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC), before continuing on to DWC.
There will be two spur lines. The first will run from the new JVC station to Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch toward Business Bay, where another station will be built.
Expo 2020 route extension
Dubai is also undertaking the Route 2020 extension of its metro system, which will start from the Expo 2020 metro station and connect with Al-Maktoum International airport’s West Terminal.
Consultants submitted their bids earlier this month for the design contract.
The extension will run for about 3km and feature two stations.
The existing Route 2020 metro link is a 15km line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.
Dubai Metro Blue Line extension
Construction progress on the Dubai Metro Blue Line extension is expected to reach 30% by the end of 2026, according to official accounts.
In December 2024, the RTA awarded a AED20.5bn ($5.5bn) main contract for the construction of the project.
The contract was awarded to a consortium of Turkiye’s Limak Holding, Mapa Group, also of Turkiye, and the Hong Kong office of China Railway Rolling Stock Corporation (CRRC).
The Blue Line will connect the existing Red and Green lines. It will be 30km long, with 15.5km underground and 14.5km above ground.
The line will have 14 stations, seven of which will be elevated. There will be five underground stations, including one interchange station, and two elevated transfer stations connected to the existing Centrepoint and Creek stations.
The project is scheduled for completion in September 2029.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16534887/main.png

