ADNOC hands out $860M deal for gas development expansion project

ADNOC LNG, a subsidiary of the Abu Dhabi National Oil Company, has signed an engineering, procurement, construction and commissioning (EPC) contract for the second phase of the Integrated Gas Development Expansion (IGD-E) project, with a consortium of Spain’s Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company.

ADNOC said on Wednesday that the contract is valued at AED 3.16 billion ($860 million) of which around half will flow into the local economy through ADNOC’s focus on maximizing in-country value.

The agreement, between ADNOC LNG and the Technicas Reunida and Target Engineering Construction Company joint venture, was signed by Fatema Mohamed Al Nuaimi, Acting CEO of ADNOC LNG, Arthur Crossley Sanz, General Manager of Tecnicas Reunidas and Chaouci Yassine, CEO of Target Engineering Construction Company.

After the signing ceremony, Al Nuaimi said: “This agreement is a significant milestone as we work across the gas value chain to further integrate our offshore and onshore gas systems to deliver greater efficiency and performance and enable us to maximize the value of our gas assets and pursue our strategic objective to ensure a sustainable and economic gas supply to meet Abu Dhabi’s growing energy needs.”

Second phase of IGD-E

According to the company, the second phase of the Integrated Gas Development Expansion (IGD-E) project will take 54 months to complete. It will add 245 million cubic feet per day of associated gas to the 1.4 billion cubic feet per day of offshore gas sent from Das Island to ADNOC Gas Processing’s Habshan gas facilities to be processed for use in power generation.

The full scope of the contract encompasses engineering, equipment and material supply, construction, installation, testing and commissioning of compression, drying and gas treatment units, as well as power generation and other auxiliary services. It includes the construction and commissioning of new gas facilities on Das Island including construction of a new Booster Compression Train with a capacity of 60 million cubic feet per day, as well as two Feed Gas Compression and Dehydration Trains, each having a capacity of 123 million cubic feet per day and two amine-based Fuel Gas Treatment Units with 80 million cubic feet per day capacity each.

Tecnicas Reunidas will lead the consortium and carry out the engineering and procurement for the project, while Target Engineering Construction Company will lead the construction and commissioning works on Das Island.

Work on ADNOC’s AED 40 billion ($11 billion) Integrated Gas Development program began in 2009, to enable the transfer of one billion cubic feet a day of high-pressure gas from the offshore Umm Shaif field, via Das Island, to ADNOC Gas Processing’s onshore facilities at Habshan and Ruwais. The program was completed in 2013.

Subsequently, Phase 1 of the Integrated Gas Development Expansion project was launched in 2015 and completed last month, boosting ADNOC’s offshore gas processing capacity by 400 million cubic feet per day to 1.4 billion cubic feet per day.  Phase I included the construction of a 4th gas dehydration unit and dry gas compression aftercooler on Das Island; gas pipelines, with a 117 kilometer offshore segment and 114 kilometer onshore segment; condensate pipelines and modifications to the Habshan gas processing complex.