meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc Gas awards $2.1bn gas infrastructure contracts

10 January 2025

 

Register for MEED’s 14-day trial access 

Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), has awarded three contracts worth $2.1bn to build infrastructure that will facilitate gas feedstock for the upcoming liquefied natural gas (LNG) terminal in Abu Dhabi’s Ruwais.

A consortium of Egyptian contractors Engineering for the Petroleum & Process Industries (Enppi) and Petrojet won a $1.24bn contract for the engineering, procurement and construction (EPC) of an LNG pre-conditioning plant within Adnoc Gas’ Habshan-5 gas processing complex.

The LNG pre-conditioning plant is intended to have the capacity to supply 1.5 billion cubic feet a day (cf/d) of gas feedstock for the Ruwais LNG complex.

UK-headquartered Petrofac secured a $335m contract to develop new compression facilities at the Habshan gas processing complex. This contract constitutes package 5 of Adnoc Gas’ larger project to upgrade its sales gas pipeline network across the UAE, also known as Estidama.

China Petroleum Pipeline Engineering Company won a $514m contract for EPC works to build a transmission pipeline network to provide gas to the Ruwais LNG complex and to other Adnoc Gas customers in the Northern Emirates.

This contract constitutes package 8 of the Estidama megaproject. In November, MEED reported that China Petroleum Pipeline Engineering was the favourite to win Estidama package 8.

The selection of contractors for packages 5 and 8 concludes the contract award exercise for the estimated $3bn Estidama megaproject. 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.

Detailed scope of work

The new LNG pre-conditioning plant will treat gas processed at facilities being built as part of Adnoc Gas’ Maximise Ethane Recovery & Monetisation (Meram) project.

Adnoc Gas awarded a $3.6bn contract for Project Meram to a consortium of Abu Dhabi’s NMDC Energy and Spanish contractor Tecnicas Reunidas in August 2023.

The Meram project has dual objectives. The first goal is to increase ethane extraction by 35%-40% 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.

The new LNG pre-conditioning plant will be an intermediate gas treatment facility for gas originating at Meram facilities, with the contractors required to perform EPC of the following units:

  • High-pressure absorber and regenerator columns and internals
  • Internals for high-pressure absorber and regenerator
  • Molecular sieve adsorber
  • Air-cooled exchangers
  • Centrifugal compressor
  • Centrifugal horizontal pumps
  • Cooling water refrigeration
  • Instrument air compressor
  • Gas turbine generator
  • Steam turbine generator
  • Waste heat recovery boilers
  • Power transformers 132/33kV
  • Integrated control and safety system
  • Tie-ins with Meram units and existing Habshan-5 facilities
  • Associated civil works, including grading works, road works and fencing

Estidama package 5, won by Petrofac, broadly covers the upgrade of the Habshan gas processing complex, and includes the EPC of the following units:

  • Booster station
  • Variable frequency drive motor-driven compressors
  • New compressor trains
  • High-pressure gas discharge units
  • Fibre optic cables and other communication equipment
  • Control systems
  • Safe and security systems

Petrofac is currently involved with several key projects involving the Habshan gas processing complex. The London-listed contractor won the main EPC contract for Estidama package 2 in July 2023. The scope of work on the $720m contract 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.

Separately, Adnoc Gas awarded Petrofac a $615m EPC contract in October 2023 for the carbon dioxide (CO2) recovery project at the Habshan complex. The planned Habshan carbon capture, utilisation and storage (CCUS) facility will have the capacity to capture and permanently store 1.5 million tonnes a year (t/y) of CO2 within geological formations deep underground.

The scope of work on Estidama package 8, won by China Petroleum Pipeline Engineering, involves building a gas transport pipeline in two sections.

The first segment of the pipeline will be a 56-inch suction line that runs 26km from the LNG pre-conditioning plant at the Habshan-5 facility to the Habshan gas processing complex. The second section is a larger portion of the pipeline. The 52-inch, high-pressure discharge line will run 155km from the KP-30 station at the Habshan gas processing complex to the upcoming Ruwais LNG facility.

Ruwais LNG terminal project

The upcoming LNG export terminal in Ruwais will have the capacity to produce about 9.6 million t/y of LNG from two processing trains, each with a capacity of 4.8 million t/y. When the project is commissioned, Adnoc’s LNG production capacity will more than double to about 15 million t/y.

Adnoc awarded the full EPC contract to the consortium of Technip Energies, JGC Corporation and NMDC Energy and achieved the final investment decision for the Ruwais LNG terminal complex in June last year.

The complex will also feature process units, storage tanks and an export jetty for loading cargoes and LNG bunkering, as well as utilities, flare handling systems and associated buildings.

Separately, Adnoc has also signed agreements with international energy companies to divest a total stake of 40% in the Ruwais LNG project.

UK energy producer BP, Mitsui & Co, Shell and French energy producer TotalEnergies will each hold 10% stakes in the Ruwais LNG terminal project, with Adnoc retaining the majority 60% stake in the facility.

Adnoc Gas will acquire its parent’s 60% stake in the Ruwais LNG facility, at cost, in the second half of 2028, when first production from the complex is due.

Along with awarding EPC contracts for the LNG pre-conditioning plant, the new compression facilities at the Habshan complex and the gas feedstock transmission pipeline, Adnoc Gas announced that capital expenditure on the three packages does not form part of the costs previously outlined by the company for its intended acquisition of Adnoc Group’s majority stake in the Ruwais LNG project.

The capex on the three projects forms part of Adnoc Gas’ $15bn capex portfolio until 2029.

ALSO READ: New CEOs take charge at Adnoc gas business units

https://image.digitalinsightresearch.in/uploads/NewsArticle/13247811/main10281124.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait tenders two Al-Mutlaa City construction packages

    2 September 2026

    Register for MEED’s 14-day trial access 

    Kuwait’s Public Authority for Housing Welfare (PAHW) has tendered two contracts covering the construction of public buildings across five districts at its Al-Mutlaa City residential project.

    The first tender covers construction in the N5 and N6 districts, while the second covers N1, N3 and N4.

    The tenders were issued on 30 August, with a bid submission deadline of 30 September.

    The project is a housing scheme located 38.3 kilometres northwest of the Kuwait metropolitan area.

    It covers approximately 104 square kilometres and is expected to house up to 400,000 people.

    The mixed-use development will include residential, social, commercial and light industrial areas.

    In March 2023, MEED reported that PAHW had appointed France-based Egis as a project management consultant for the Al-Mutlaa City development.

    Under the agreement, Egis is providing programme-level service management, construction logistics and interface management services.

    The scope of work also includes cost management, a digital programme management system and a project management information system for the scheme.

    Al-Mutlaa City is one of the largest housing infrastructure projects being developed by the government as part of Kuwait’s Vision 2035.

    UK analytics firm GlobalData expects Kuwait’s construction industry to grow at an average annual rate of 7.1% in 2025-28, supported by investment in renewable energy, transport and oil and gas projects, as well as spending under the New Kuwait 2035 National Development Plan.

    Under this strategy, the government plans to invest KD350m ($1.1bn) to develop several sports projects in the country.

    The residential construction sector is expected to register average annual growth of 3.8% in 2025-28, supported by the government’s plan to build 65,500 housing units by 2029 through five projects.

    MEED’s September 2026 report on Kuwait includes:

    > COMMENT: Kuwait keeps dealmaking alive under fire
    > GOVERNMENT: Kuwait shows tentative signs of economic development
    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > POWER & WATER: Kuwait utilities investment shifts towards water
    > CONSTRUCTION: Kuwait construction holds up despite regional strife
    > MARKET TALK: Kuwait stands resilient amid regional tensions

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19245517/main.png
    Yasir Iqbal
  • Preferred bidders emerge for Zatca residential PPP

    2 September 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Zakat, Tax and Customs Authority (Zatca), through the National Centre for Privatisation and PPP (NCP), has selected preferred bidders to develop residential buildings at various land ports across the kingdom.

    The project covers developments across nine land ports, separated into two packages.

    Local firm Saudi Arabian Trading & Construction Company has been selected as the preferred bidder for the first package, which includes the Al-Batha, Salwa, Al-Raqi, Jadidat Arar, Al-Wadiah and Empty Quarter sites.

    Bahrain-headquartered Lamar Holding is the preferred bidder for the second package, which includes land ports at Al-Hadithah, Halat Ammar and Al-Durrah.

    The project will be implemented as a public-private partnership (PPP) on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 23 years, including the construction period.

    The contract covers the construction and management of new residential buildings and associated facilities at the land ports, as well as the rehabilitation of existing facilities.

    The project is the latest scheme in the kingdom’s PPP pipeline. In January, Saudi Arabia launched a national privatisation strategy aimed at mobilising $64bn in private sector capital by 2030.

    Building on the privatisation programme first introduced in 2018, the strategy focuses on unlocking state-owned assets for private investment and privatising selected government services.

    In a statement, NCP said the strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19244076/main.jpg
    Yasir Iqbal
  • NWC confirms $347m Saudi sewage treatment plant deal

    2 September 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Water Company (NWC) has signed a contract worth more than SR1.3bn ($347m) with a Saudi-Chinese consortium to rehabilitate, operate and maintain nine sewage treatment plants (STPs).

    The 15-year contract covers plants located across the Hail, Qassim, Al-Jouf and Northern Borders provinces. The plants have a combined treatment design capacity of more than 337,000 cubic metres a day (cm/d).

    MEED exclusively reported in January that the consortium comprising China’s Jiangsu United Water Technology and Saudi-based Armada Holding had won the contract for the project.

    The contract is for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10) and includes an initial three-year period for rehabilitation and upgrade works, followed by long-term operation and maintenance.

    As MEED understands, United Water will be responsible for design, financing, operation and part of the construction works. Saudi Arabia’s Armada Holding will handle construction, equipment import customs clearance and local business communications. UAE-registered Prosus Holding will act as the financial investor.

    LTOM packages

    The same consortium is also expected to sign a contract for Package 11 of the LTOM programme in the coming months.

    In April, MEED exclusively reported that the consortium won the contract for this project, which will have a combined capacity of about 440,000 cm/d.

    Bids for North Western B Cluster (LTOM12) remain under evaluation. The contract covers the construction and upgrade of seven STPs with a combined capacity of about 162,000 cm/d.

    NWC also tendered the Eastern A Cluster (LTOM14) package in April, covering the upgrade of six existing STPs with a capacity expansion of 30,000 cm/d at the Al-Jarodia STP.

    This will increase total treatment capacity from about 263,000 cm/d to approximately 293,000 cm/d, with an estimated cost of $180m.

    The bid submission deadline is 30 September.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19242964/main.jpg
    Mark Dowdall
  • Egypt signs PPA for 1GW Ras Shokeir wind farm

    2 September 2026

    Register for MEED’s 14-day trial access 

    A joint venture of the local Hassan Allam Utilities Energy and Infinity Power has signed a power purchase agreement (PPA) with Egyptian Electricity Transmission Company (EETC) for the development of the 1GW Ras Shokeir wind project in Egypt.

    The project is located in Egypt’s Red Sea Governorate, within the Gulf of Suez wind corridor. It will cover approximately 143 square kilometres.

    The PPA has a 25-year term. The project will supply electricity to Egypt’s national grid.

    Ras Shokeir is expected to generate enough electricity to power more than 1.2 million Egyptian homes. It is also expected to avoid more than 1.36 million tonnes of CO2 emissions annually.

    The PPA was signed by EETC chairperson Mona Rizk and Infinity Power co-founder and CEO Nayer Fouad, representing the Infinity Power-Hassan Allam consortium.

    The signing brings the project closer to development as Egypt seeks to expand its renewable energy capacity. Egypt has set a target for renewable energy to make up 42% of the electricity mix by 2030 and 65% by 2040.

    This includes the 500MW Amunet 2 wind project, which is being developed by UAE-headquartered Amea Power following the commissioning of the first Amunet wind project in June 2025.

    Hassan Allam Utilities Energy and Infinity Power are also developing Egypt’s $560m West Minya solar plant, which will combine 1,000MWac of solar photovoltaic capacity with a 600MWh battery energy storage system.

    In June, MEED reported that a joint venture of Hassan Allam Construction and India’s Sterling & Wilson Renewable Energy had won the engineering, procurement and construction contract for the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19242701/main1603.jpg
    Mark Dowdall
  • Iraq looks to accelerate oil pipeline projects

    2 September 2026

    Iraq’s Ministry of Oil has held talks with a delegation from Qatari company UCC on accelerating the progress of two major pipeline projects, according to a statement from Iraq’s Office of Media and Government Communication.

    The first proposed pipeline route extends from Basra, in southern Iraq, to Haditha, located about 200 kilometres northwest of Baghdad, then on to Faysh Khabur, which lies on the border with Syria and near the border with Turkiye.

    The second pipeline extends from Haditha to Syria’s coastal city of Baniyas.

    Discussions covered the contract type, implementation timeline and “other technical matters”, according to the statement released by the Iraqi government.

    During the meeting, Iraq’s Minister of Oil, Basem Mohammed Khudair Al-Abadi, emphasised the need to expedite the tendering process for the project contracts.

    He said all obstacles to progress on the projects needed to be eliminated.

    He also said weekly meetings will be held between relevant parties to reach agreements on the economic models for the pipelines and their routes.

    The Ministry of Oil said UCC is leading a consortium of companies developing the projects.

    It added that the consortium includes US-based Chevron, the investment company TI Capital and France’s TotalEnergies.

    In July, Iraq’s cabinet approved Basra Oil Company signing a ​heads of agreement and a non-disclosure agreement with the consortium to explore possible future oil pipeline projects.

    Under the terms of the agreement, the consortium will prepare technical and financial feasibility studies for strategic export pipeline projects.

    Also in July, US-based KBR was awarded a consultancy contract for the section of pipeline due to extend from Basra to Haditha.

    In April, Iraq announced the allocation of $1.5bn for the Basra-Haditha route, while the larger scheme is estimated at around $5bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19241649/main.jpg
    Wil Crisp