ADNOC Gas PLC on Tuesday said it had approved phase one of the Rich Gas Development (RGD) project in the United Arab Emirates and awarded $5 billion worth of contracts.
“The contracts involve expanding key processing units to increase throughput and improve operational efficiency across four ADNOC Gas Facilities: Asab, Buhasa, Habshan (Onshore), and the Das Island liquefaction facility (Offshore)”, Abu Dhabi National Oil Co.’s gas processing and sales arm said in an online statement.
“The company intends to take FIDs [final investment decisions] on two additional phases of the RGD project at Habshan and Ruwais to enable the delivery of greater production capacity to meet growing market demands.
“The RGD project will enable the development of new gas reservoirs, which are key to boosting liquid gas exports, supporting gas self-sufficiency in the UAE, and providing essential feedstock to the country’s growing petrochemical industry”.
ADNOC Gas’ sales volumes last year grew two percent to 3,616 million MMBtu. It covers about 60 percent of the UAE’s sales gas needs, as well as supplies over twenty countries, according to the company.
The RGD phase 1 contracts were awarded in three tranches. The bulk at $2.8 billion went to Aberdeen, Scotland-based John Wood Group PLC for Habshan, currently a five-plant gas processing complex with a capacity of 6.1 billion standard cubic feet a day through 14 trains.
“Wood’s scope includes the delivery of substantial upgrades and debottlenecking solutions to the existing Habshan and Habshan 5 gas processing mega-complexes and pipelines, including brownfield modifications and the installation of new facilities”, the contractor said in a press release.
“The project will be delivered by more than 500 Wood engineering, project management and commissioning specialists based in Abu Dhabi with support from the company’s global engineering hubs”, Wood added. Completion is expected 2027.
Jersey-based Petrofac Ltd. bagged a $1.2 billion contract for the Das Island liquefaction facility, which currently has a capacity of six million metric tons a year.
“Petrofac will provide EPCM [engineering, procurement and construction management] services and oversee procurement and construction contracts to build a new inlet facility, two new gas dehydration and compression trains, each with a capacity of 420 million standard cubic feet per day, and associated infrastructure”, Petrofac said separately.
A third tranche valued $1.1 billion went to Dubai-based Kent PLC for the Asab and Buhasa portions of the RGD project, ADNOC Gas said.
“The FID and contract awards for the first phase of the Rich Gas Development project mark a significant milestone in ADNOC Gas’ strategy to deliver +40 percent EBITDA [earnings before interest, taxes, depreciation and amortization] growth between 2023 and 2029”, ADNOC Gas chief executive Fatema Al Nuaimi said.
Source: By Jov Onsat from Rigzone.com