Adnoc Gas to increase capacity by 20% in five years
12 August 2024
Register for MEED's 14-day trial access
Adnoc Gas has announced it is making progress on core growth projects that are expected to increase the company’s natural gas processing capacity by 20% within the next five years.
The subsidiary of Abu Dhabi National Oil Company (Adnoc Group) has made significant investments in those growth projects, the largest of which is the liquefied natural gas (LNG) export terminal facility in Ruwais, Abu Dhabi.
Peter van Driel, chief financial officer at Adnoc Gas, provided updates on some of these projects during a press conference held to discuss the company’s financial results for the second quarter of 2024.
Adnoc Gas announced an adjusted net income of $1.19bn in the first quarter of 2024, a year-on-year growth of 21%. Revenues for the second quarter were registered at $6.076bn, a year-on-year increase of 13%, the company said on 12 August.
Ruwais LNG facility
Adnoc Gas expects to commission the upcoming Ruwais LNG export terminal in 2028. The company awarded the full engineering, procurement and construction (EPC) contract and achieved the final investment decision (FID) for the project in June.
A consortium of France’s Technip Energies, Japan-based JGC Corporation and Abu Dhabi-owned NMDC Energy was awarded the EPC contract, worth $5.5bn, Adnoc announced on 12 June.
The LNG export terminal in Ruwais 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. When the project is commissioned, Adnoc’s LNG production capacity will more than double to about 15 million t/y.
Estidama advances
Adnoc Gas said it expects EPC works on its project to expand its sales gas pipeline network across the UAE, also known as Estidama, to complete in the third quarter of 2025.
Through the Estidama scheme, Adnoc Gas aims to extend the existing 3,200-kilometre 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.
Adnoc Gas, in July, awarded contracts worth a total of $550m for two EPC packages of the Estidama project.
The combined packages 4+7 of the Estidama project were awarded to the UAE unit of Oman's Galfar Engineering & Contracting, valued at $295m. Abu Dhabi’s NMDC Energy won package 6, which is worth $255m.
Habshan CO2 recovery project
Adnoc Gas awarded UK-headquartered Petrofac the main EPC contract, valued at $615m, for the Habshan carbon dioxide (CO2) recovery project in October last year. The planned Habshan carbon capture, utilisation and storage (CCUS) facility will have the capacity to capture and permanently store 1.5 million t/y of CO2 within geological formations deep underground.
In its presentation to journalists on 12 August, Adnoc Gas said it expects the Habshan CO2 recovery project to be commissioned in the first quarter of 2026.
Project Meram
Adnoc Gas anticipates EPC work on its Maximise Ethane Recovery & Monetisation (Meram) project to finish in the last quarter of 2025.
The company 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 consortium began execution of EPC work on the project in the same month, as MEED previously reported.
The strategic Meram project aims to achieve dual objectives, Adnoc stated. 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.
Other growth projects
Regarding its other core growth projects, Adnoc Gas said it intends to complete its P5 projects in 2027. Adnoc Gas’ P5 projects are aligned with supporting its parent company's target of achieving an oil production potential of 5 million barrels a day (b/d) by 2027.
“P5 is a set of activities to accommodate the 5 million b/d [Adnoc Group target],” Van Driel told journalists.
Separately, Adnoc Gas said it now expects EPC work on the second phase of its integrated gas development expansion project (IGD-E2) to complete in the first quarter of 2025.
A consortium of Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company is executing EPC works on the IGD-E2 project, which is estimated to be worth about $1.4bn. The project will allow Adnoc Gas’ Habshan plant to process an additional 200 to 400 million cubic feet a day (cf/d) of offshore gas. Its output currently stands at 1.4 billion cf/d.
The Bab Gas Cap development project, which has seen delays since being initiated a few years ago, is expected to complete in 2028, Adnoc Gas said.
Lastly, Adnoc Gas also expects its LNG2.0 project, through which it plans to increase ethane output and reduce greenhouse gas emissions from its LNG production complex on Das Island, to complete in 2028.
Italian contractor Saipem and France-based Technip Energies are participating in a feed-to-EPC contest for the project, MEED previously reported. Adnoc Gas will select the contractor that submits the most competitive front-end engineering and design (feed) proposal for executing EPC works. This constitutes the basic method of a feed-to-EPC competition.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
-
-
Saudi contractor wins $354m Alkhobar mall contract29 June 2026
-
-
UCC Saudi wins $400m Diriyah MEP and finishing deal29 June 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
-
Chinese contractor wins Qiddiya Northwest transport hub
29 June 2026
Saudi gigaproject developer Qiddiya Investment Company (QIC) has awarded a contract to build a new transport hub in the entertainment city of Qiddiya on the outskirts of Riyadh.
The contract was awarded to Beijing-headquartered China State Construction Engineering Corporation.
The project is located within the resort core zone of the development.
MEED understands that its scope covers the construction of a parking structure for up to 2,000 vehicles; a transport hub consisting of a passenger flow system, ticketing and transit-related activities; retail, food and beverage, and hospitality facilities; mechanical, electrical and plumbing systems; and soft and hard landscaping works.
Earlier this year, MEED exclusively reported that QIC had tendered a contract to build a new transport hub.
Local firm Ammico Contracting undertook the site enabling works.
QIC is accelerating plans to develop additional assets at Qiddiya City.
Last week, MEED reported that QIC had invited contractors to prequalify for a contract to build an indoor sports arena within its Qiddiya entertainment city project.
The multipurpose arena is designed to International Olympic Committee standards.
It will be located in District 18, in the Uptown South area of Qiddiya.
Once completed, the indoor arena will be capable of hosting a wide range of sports, cultural and entertainment events.
The arena will feature numerous sports courts for basketball, handball, futsal, volleyball, tennis, boxing and gymnastics.
It will have a seating capacity of 18,000 spectators.
QIC’s other major projects include an e-sports arena, the National Tennis Centre, Prince Mohammed Bin Salman Stadium, a motorsports track, a racecourse, the Dragon Ball and Six Flags theme parks, and Aquarabia.
QIC opened the Six Flags theme park to the public in December last year.
The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.
The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17474943/main.jpg -
Saudi’s WTCO considers equity model for water schemes
29 June 2026
Saudi Arabia’s Water Transmission Company (WTCO) is understood to be considering changes to the delivery model for the flagship Jubail-Buraidah and Ras Mohaisen-Baha-Mecca independent water transmission system (IWTS) projects.
According to a source familiar with the plans, WTCO is in ongoing discussions with potential partners to establish a special purpose vehicle (SPV) that would take equity stakes in the two projects.
The proposed changes could push procurement for the project into 2027, the source said.
The schemes will have a combined water capacity of almost 1.4 billion cubic metres a day (cm/d). The Jubail-Buraidah IWTS comprises an approximately 348-kilometre-long greenfield water transmission system with a capacity of 840,650 cm/d, delivering water from the Ashmasiah reservoirs to cities and towns in Al-Qassim province.
The Ras Mohaisen-Baha-Mecca IWTS involves constructing an approximately 325km-long greenfield IWTS with a capacity of 542,000 cm/d, delivering water from Ras Mohaisen to the Adham and Aradhiyah regions.
The Jubail-Buraidah project is large by WTCO standards. The company’s second phase of the Khobar-Hofuf system, completed in 2024, was 140km in length and had a capacity exceeding 530,000 cm/d.
Bidding for both schemes has been extended several times since tendered last September under the public-private partnership model.
Most recently, the bid submission deadline was moved to 2 August for the Jubail-Buraidah IWTS and to 9 August for the Ras Mohaisen-Baha-Mecca IWTS.
As previously reported, local firms Alkhorayef Water & Power Technologies, Mutlaq Damook Al-Ghowairi Contracting, Saudi Services for Electro Mechanic Works and Al-Rawaf Trading & Contracting, among other companies, were expected to submit bids for the main contract.
Under the revised structure, the SPV would appoint the engineering, procurement and construction (EPC) contractor directly.
WTCO was established in 2020 as part of Saudi Arabia’s water sector restructuring to develop and operate water transmission infrastructure on a more commercial basis, with a greater emphasis on private-sector participation and alternative financing models.
There are also plans to tender a contract for phase two of the Ras Mohaisen water transmission system project. This includes laying water transmission pipelines 408km in length with a capacity of 400,000 cm/d. This project is estimated to cost about $600m.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17474889/main.jpg -
Saudi contractor wins $354m Alkhobar mall contract
29 June 2026
Register for MEED’s 14-day trial access
Riyadh-based construction company Lynx Contracting has won a SR1.3bn ($354m) contract to build the Al-Khobar Downtown Mall and Boulevard project.
The contract was awarded by local developer Arabian Centres Company (Cenomi Centres). The contract duration is three years from the construction start date.
In a stock exchange filing on the Tadawul, Cenomi Centres said the scope includes “design, engineering, construction, supply, installation, testing, commissioning, obtaining all required regulatory approvals and all related works up to the final handover and full operation of the project”.
The contract is the first major deal signed since the UAE’s Al-Futtaim Group acquired a 49.95% stake in Saudi Arabia’s Cenomi Retail in a deal worth about SR2.5bn ($667m) in July last year.
Al-Futtaim said it acquired the shares at a price of SR44 ($11.73) each from Cenomi Retail’s existing shareholders. These include Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company and FAS Real Estate Company.
Dubai-headquartered Al-Futtaim Group is one of the region’s most established private businesses, with operations spanning the automotive, financial services, real estate, retail and healthcare sectors.
In the retail sector, the group operates brands including Zara, Massimo Dutti and Bershka in the region.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
https://image.digitalinsightresearch.in/uploads/NewsArticle/17474642/main.jpg -
Iran extinguishes fire at Mahshahr petrochemicals complex
29 June 2026
Firefighting teams have extinguished a fire at the Mahshahr petrochemicals complex in Iran’s Khuzestan province, according to domestic news reports.
The fire broke out at a facility operated by Karun Petrochemical Company on 26 June during an operation to remove debris following recent attacks on facilities in the area, the company said.
Earlier this month, the facility was hit by Israeli strikes, forcing an evacuation.
Karun Petrochemical Company produces a range of products.
It has a nameplate capacity to produce 40,000 tonnes a year (t/y) of toluene diisocyanate (TDI) and 40,000 t/y of methylene diphenyl diisocyanate (MDI).
It also has the capacity to produce 30,000 t/y of aniline and 92,300 t/y of nitric acid (HNO3).
TDI and MDI are both used primarily as building blocks to create polyurethane products.
TDI is mostly used to make flexible polyurethane foams, and MDI is usually used to create rigid foams, adhesives, sealants and elastomers.
Aniline is also used to make urethane polymers and in the dye industry, where it is a precursor to indigo, which is used to dye jeans blue.
Nitric acid is a highly corrosive mineral acid, and its main industrial use is the production of fertilisers.
The Mahshahr petrochemicals complex is one of the most important petrochemical complexes in Iran. It was also previously hit by Israel in strikes in April.
On 4 April, Israeli forces targeted at least eight major petrochemical complexes in the Mahshahr region, along with critical supporting infrastructure, including power plants that supply electricity to the industrial zone.
Mahshahr accounts for approximately 28% of Iran’s petrochemicals production.
Iran’s petrochemicals industry is the country’s second-largest source of export revenue after crude oil.
The country has a nominal production capacity of about 95 million t/y of petrochemicals, although actual output prior to the latest conflict was significantly lower due to persistent shortages of electricity and natural gas.
Iran has invested tens of billions of dollars in developing its petrochemicals infrastructure, and if facilities are severely damaged, rebuilding would pose a major financial and technical challenge.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17468886/main.jpg -
UCC Saudi wins $400m Diriyah MEP and finishing deal
29 June 2026
UCC Saudi, the local branch of Qatar’s UCC Holding, has won a SR1.5bn ($400m) contract at Diriyah Square in the Diriyah Two area.
The scope includes package four at Diriyah Square, covering mechanical, electrical and plumbing (MEP) and finishing works.
The contractors had submitted their best and final offers for the contract in October last year, as MEED reported.
Diriyah Square lies at the centre of the Diriyah project and will offer hospitality, residential, retail, leisure and entertainment facilities.
The contract is another significant contract win for UCC Saudi at the Diriyah project in recent weeks. Earlier this month, MEED exclusively reported that Diriyah Company had awarded a SR2.7bn ($727m) contract for the main construction works on the development’s Waldorf Astoria superblock.
The Waldorf Astoria superblock is a mixed-use development comprising a Waldorf Astoria hotel, Waldorf Astoria-branded residences, commercial and residential facilities, and office space.
The Waldorf Astoria hotel will feature 200 keys, while the residential component will comprise 47 branded residences.
The project is located on the Grand Boulevard South and Northern Arterial Road in the Boulevard Northwestern district at Diriyah Gate 2.
The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17448342/main.jpg