Gas takes centre stage in Adnoc downstream expansion
13 April 2023
This package on the UAE’s downstream sector also includes:
> Fertiglobe to pay $700m in second-half 2022 dividend
> Borouge signs East Africa distribution agreement
> Adnoc receives bids for key Estidama project packages
> Adnoc to study ammonia value chain in German state
> Adnoc Gas receives bids for ethane recovery project
> Adnoc committed to supplying hydrogen says executive
Regional energy producers are racing to increase their gas production and supply potential as natural gas as a clean energy source becomes more important in the global energy mix.
By merging its gas processing and liquefied natural gas (LNG) businesses this year, Abu Dhabi National Oil Company (Adnoc) has made considerable strides in this race.
Adnoc Gas, the new, combined entity that began operating on 1 January, has a processing capacity of about 10 billion cubic feet a day (cf/d) of gas across eight onshore and offshore sites and a pipeline network of over 3,250 kilometres.
This makes the company, now listed on the Abu Dhabi Securities Exchange, one of the largest gas processing firms in the world.
The strategic move to consolidate its gas processing business underscores Adnoc’s ambition to propel the growth of its overall downstream portfolio, including petrochemicals, with the help of gas.
Adnoc Gas is already overseeing progress on vital downstream projects inherited from the erstwhile Adnoc Group subsidiaries Adnoc Gas Processing and Adnoc LNG.
Sales gas pipeline network
The Estidama project, crucial to enhancing Adnoc’s sales gas pipeline network across the UAE, is progressing under Adnoc Gas’ management.
The project is part of Adnoc Group’s 2030 mandate to ensure a sustainable natural gas supply to its key customers in the country. It aims to cater to increasing demand for gas from industrial consumers across the UAE, particularly in the Northern Emirates.
Contractors recently submitted bids for two key engineering, procurement and construction (EPC) packages of the Estidama project – commercial bids for package two and technical bids for combined package numbers four and seven.
The scope of work on Estidama package two broadly involves building a new facility at the KP-30 location of the Habshan gas compressor plant (HGCP) in Abu Dhabi and installing three variable frequency drive motor-driven compressors.
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 Processing’s customer Dubai Supply Authority (Dusup).
The EPC work on the estimated $2bn Estidama project has been divided into seven packages.
Abu Dhabi-based contractor Integrated Specialised General Contracting Company (Iscco) won package one, understood to have a contract value of $18m, in December 2021.
In January this year, MEED named frontrunners to win packages three and six.
Package five 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 cf/d 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 is understood to have issued the main tender for Meram in February, with the scope of work comprising the detailed engineering aspect of the project. Contractors submitted technical bids for the tender in early March.
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 has officially awarded Italian contractor Tecnimont the main EPC contract for its planned blue ammonia project in the Taziz Industrial Chemicals Zone.
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 tonnes a year (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 (Shaheen) 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, meanwhile, has committed to building the UAE’s first methanol plant at Taziz, with a planned production capacity of 1.8 million t/y.
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.
This month’s special report on the UAE also includes:
> UPSTREAM: Strategic Adnoc projects register notable progress
> POWER: UAE power sector shapes up ahead of Cop28
> WATER: UAE begins massive reverse osmosis buildup
> BANKING: UAE lenders chart a route to growth
Exclusive from Meed
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Lowest bidder emerges for Kuwait Airport Terminal 2 operations19 October 2026
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Dubai tenders Al-Maktoum-Dubai South drainage scheme19 October 2026
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Contractor wins $44m Morocco rail stations deal19 October 2026
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Firms submit Dubai multibillion-dollar road scheme interest19 October 2026
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Libya seeks offshore contractors for $8bn gas project19 October 2026
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Ireland’s DAA International has emerged as the lowest bidder for the contract to operate, manage and maintain the new passenger Terminal 2 (T2) at Kuwait International airport, submitting an offer of KD419m ($1.35bn).
Official price-opening records released by Kuwait’s Central Agency for Public Tenders on behalf of the Directorate General of Civil Aviation show three international airport operators submitted commercial bids for the tender.
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MEED reported in June 2023 that six airport operators had initially been invited to bid for the Terminal 2 operating concession.
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Dubai tenders Al-Maktoum-Dubai South drainage scheme19 October 2026
Dubai Municipality has invited contractors to submit bids by 5 November for the construction of a stormwater drainage system connecting Al-Maktoum Airport and Dubai South
The project, designated TF-06-C2, involves approximately 20 kilometres of pipelines with diameters ranging from 400mm to 3,000mm. The works will use deep trenchless construction and conventional open-cut methods.
The scheme is one of four projects, for which a project management consultancy (PMC) tender was issued earlier this month.
The tender for TF-06-S1 Supervision of Stormwater Drainage System Projects – Package 4 was issued on 6 October.
The consultancy covers the following projects:
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TF-07-C1
As previously reported, contractors are preparing to submit bids on 22 October for the main construction contract for TF-07-C1.
The project covers more than 100 million square metres between Sheikh Mohammed Bin Zayed Road and Emirates Road, and from Expo Road to Dubailand.
It will provide stormwater infrastructure and service connections for more than 20 private developers and Al-Yalayis 5, as well as supporting major roads in the Jebel Ali area. The construction scope includes a major gravity drainage system with pipeline diameters of up to 3,000mm.
TF-24-C1
Bids for TF-24-C1 were submitted on 1 October, with Nael Construction & Contracting, Al-Nasr Contracting Company and Al-Kharafi & Sons understood to be among the bidders.
The project will connect developers’ areas in Dubailand to the stormwater network. It includes 18km of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.
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Firms submit Dubai multibillion-dollar road scheme interest19 October 2026

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Contractors submitted expressions of interest on 10 October for a design-and-build contract for a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.
Dubai’s Roads & Transport Authority (RTA) held an online meeting after the submissions to prepare for the prequalification phase of tendering, expected to start in a few weeks.
The scope covers about 30 kilometres (km) of works.
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The RTA floated the expression of interest notice to contractors in early September.
The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.
Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.
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The plans ultimately became standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.
The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.
Planning for growth
Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.
In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan.
In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.
The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20745908/main.jpg -
Libya seeks offshore contractors for $8bn gas project19 October 2026
Libya’s Mellitah Oil & Gas Company (MOG) has invited companies to prequalify for a major offshore package as part of its Mellitah Complex Expansion & CO2 Management Integrated Development Project, which is estimated to be worth about $8bn.
The package is estimated at around $3bn and focuses on developing offshore pipelines and subsea systems for the “E” Offshore Installation Project and CO2 project.
The deadline to submit prequalification documents is 5 November. The contract will use the engineering, procurement, installation and commissioning (EPIC) model.
MOG is a joint venture of Libya’s National Oil Corporation and Italian oil and gas company Eni.
This is not the first time MOG has invited submissions for the offshore pipelines and subsea systems package. The company originally launched a prequalification process for the EPIC contract in 2021, but the project experienced delays and the process was eventually cancelled. The prequalification process was restarted nearly three years later, but it was also ultimately abandoned.
Complex expansion
As part of the Mellitah Complex Expansion & CO2 Management Integrated Development Project, two offshore structures – Structure A and Structure E – will be developed in Libya’s offshore block NC 41.
Structure A is in the central-western part of the area, about 80 kilometres (km) from the Libyan coast, with a water depth of 95-105 metres.
Structure E is located in the central-eastern part of the area, about 130km from the Libyan coast, in a water depth of 205-235 metres.
The scope of the wider project includes:
- A new wellhead platform installed in 96 metres of water as part of the development of Structure A
- A new production platform installed in about 220 metres of water depth as part of the development of Structure E
- Modification of the existing Sabratha platform
- Sealines and subsea systems for structures A and E
- Upgrading the existing onshore Mellitah complex
Project contract awards
In June 2024, MOG awarded an offshore engineering, procurement and construction (EPC) contract worth €1.2bn ($1.28bn), which was part of the Mellitah Complex Expansion & CO2 Management Integrated Development Project.
The contract was awarded to a consortium of three Italian companies: Rosetti Marino, Kerry Project Logistics and Gruppo Antonini.
In a statement, Rosetti Marino said its share of the project contract was worth €400m ($428m), comprising 33% of the total contract value.
Rosetti Marino said its scope of work includes EPC and load-out activities to deliver the topside of the approximately 6,000-tonne gas production wellhead platform, named WHP-A, to be installed off the coast of Libya.
Project setbacks
During 2023 and 2024, several setbacks affected the Mellitah Complex Expansion & CO2 Management Integrated Development Project.
In November 2023, MOG restarted the prequalification process for an upstream offshore package worth an estimated $700m.
The project scope involves modifications to the offshore Sabratha platform at the Bahr Essalam field.
Less than two months later, MOG restarted prequalification for a second package as part of the integrated development project.
The scope of the second package covers key sealine and subsea systems.
No reason was given for restarting the prequalification process for two of the project’s packages.
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