ADNOC Gas awards $550 million contracts to expand UAE gas infrastructure, increase customer reach

ADNOC Gas plc today announced the award of engineering, procurement and construction (EPC) contracts for the next phase of the UAE sales gas pipeline network enhancement "ESTIDAMA Project".

Separately, ownership of ESTIDAMA is being transferred from ADNOC Gas to ADNOC, thereby significantly optimising ADNOC Gas' capital efficiency.

The EPC contracts are worth a combined $550 million (AED2 billion) and were awarded to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates.

Approximately 70% of the contracts' value is expected to flow back into the UAE economy through ADNOC's In-Country Value (ICV) programme, supporting local economic growth and diversification.

ESTIDAMA will extend the UAE's natural gas pipeline network operated by ADNOC Gas from approximately 3,200 kilometres to over 3,500 kilometres, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE.

Following the ownership transfer, ADNOC Gas will continue to manage ESTIDAMA, leveraging its expertise in construction and pipeline operations, with ADNOC covering the capital expenditures for this critical infrastructure project.

Dr. Ahmed Alebri, Chief Executive Officer of ADNOC Gas, said, "This award supports the ongoing expansion of the UAE's gas pipeline network, which will bring lower-cost and sustainable natural gas to more locations across the country. We are proud to play a leading role in meeting the growing demand for gas across the country and enabling the UAE's goal of gas self-sufficiency.

"With the transfer of ownership of the ESTIDAMA Project to ADNOC, ADNOC Gas will continue to benefit from the expansion of the pipeline networks, while improving our capital efficiency to ensure that we maximise value for our shareholders."

ADNOC Gas will continue to expand its domestic business through ESTIDAMA, paying ADNOC a variable transmission fee for actual throughput of the pipeline. ADNOC Gas will also be paid to operate and maintain ESTIDAMA on behalf of ADNOC.