Meed | Adnoc Gas awards $2.1bn gas infrastructure contracts

Adnoc Gas awards $2.1bn gas infrastructure contracts

10 January 2025

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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

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Indrajit Sen

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T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

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Contractor wins $105m Medina university hospital deal

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Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

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READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

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Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

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According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

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State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
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- Kuwait Drilling Company (Kuwait)
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- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
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- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
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- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

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It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.