Adnoc Gas awards $550m of Estidama contracts
15 July 2024
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Adnoc Gas has awarded contracts worth a total of $550m for two engineering, procurement and construction (EPC) packages of its sales gas pipeline network upgrade project, also known as Estidama.
The combined packages four and seven of the Estidama project were awarded to the UAE unit of Oman's Galfar Engineering & Contracting. The value of the contract is understood to be about $295m.
Abu Dhabi’s NMDC Energy has won package six. The value of the contract is $255m, NMDC Energy 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 the installation of a 52-inch, 74-kilometre (km) pipeline from Sweihan to Al-Shuwaib in Abu Dhabi, and building two block valve stations.
Adnoc Gas received technical and commercial bids for package six and the combined packages four and seven in 2022 and 2023, respectively.
Contractors submitted technical bids for package six in August 2022 and commercial bids by 21 November of that year.
Contractors submitted technical bids for the combined packages four and seven by 27 March last year, and commercial bids by 9 August.
in late May, MEED reported that Adnoc Gas had asked contractors to extend the validity of their bids for the two packages until 30 June. This was the latest in a series of bid validity extension requests made by the project operator.
Estidama scheme
Adnoc Gas, the natural gas producing and processing subsidiary of Abu Dhabi National Oil Company (Adnoc) has made significant progress with the Estidama project, which will enhance Adnoc’s sales gas pipeline network across the UAE. The objective of the scheme is to cater to rising demand for gas from industrial consumers, particularly in the Northern Emirates.
Through the Estidama scheme, Adnoc Gas aims to extend the existing 3,200km 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 one of the project, which is understood to have a contract value of $18m. Iscco later sub-contracted the detailed engineering works on package one to the Abu Dhabi branch of Sweden-headquartered consultancy Rejlers.
In July 2023, Adnoc Gas awarded the EPC contract for package two, estimated to be worth $720m, to UK-based Petrofac, and package three, valued at $630m, was won by a consortium of NMDC Energy and Lebanon’s CAT Group.
Separately, Adnoc Gas received technical bids from contractors for package five of the Estidama project on 24 June, MEED reported. Package five was previously part of package two but was later split off and tendered as a separate package by Adnoc Gas.
The scope of work on package five involves EPC works to upgrade the Habshan gas processing complex in Abu Dhabi.
MEED also recently reported that contractors were preparing technical bids for package eight of the Estidama scheme, which involves building a new pipeline that will transport gas as feedstock from the Habshan gas processing complex in Abu Dhabi to its upcoming liquefied natural gas terminal in Ruwais. The proposed pipeline will cover about 190km and will be built in two sections.
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Slow year for Maghreb power and water awards
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The Maghreb region has experienced a slow 2025 in terms of power and water project contract awards. Hopes for the year now rely on a strong second half if the sector is to match the performance of previous years.
As of early July, the total value of power project contract awards had reached $663m, according to regional projects tracker MEED Projects. This means that by the end of the year, the market is expected to fall significantly short of the peaks of $3.8bn in 2023 and $4.5bn in 2024.
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Xlinks disappointment
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Power progress
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Water advancements
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Policy focus
For policy, governments have been manoeuvring as they respond to the global challenge of climate change.
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Main image: Noor electric power station close to Ouarzazate, Morocco
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According to local media reports, Nasser Al-Assadi, adviser to Prime Minister Mohammed Sudani, stated that the previous developers had overestimated the project budget; therefore, the government will relaunch the entire process to implement the project.
Iraq’s National Investment Commission (NIC) awarded an estimated $2.5bn contract to develop and operate the Baghdad Metro project in July last year.
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Germany’s Deutsche Bank was the project finance adviser.
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Malaysian consulting firms ConsultantHSS and HSS Engineering were working on the project.
Project scope
The Baghdad Metro project is one of the largest infrastructure schemes in Iraq.
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The Yellow Line will extend 30km from Al-Baladiyat to Adan Square. The White Line will be 23km long and will run from Al-Kadhimiya to Al-Bayaa, while the Airport Line will run 12km from Baghdad airport to Al-Qadisiya.
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Ibri 3 construction deal implies Masdar win
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A Chinese consortium of China Energy Engineering International Corporation (CEEC), China Power Construction Group East China Survey & Design Institute Company (East China Institute) and China Energy Construction Group Hunan Thermal Power Construction Company (Hunan Thermal Power) says it has won an early works contract to build the Ibri 3 solar independent power plant (IPP) in Oman.
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Previous projects
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