Expansion of UAE Gas Infrastructure with 0 Million in Contracts to Increase Customer Reach

ADNOC Gas, a leading energy company in the UAE, has recently awarded engineering, procurement, and construction (EPC) contracts worth AED2 billion (0 million) for the next phase of the UAE’s sales gas pipeline network enhancement project, known as the “ESTIDAMA Project.” The contracts were granted to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates, two reputable firms in the industry.

This significant project aims to enhance the UAE’s natural gas pipeline network, operated by ADNOC Gas, from approximately 3,200 kilometers to over 3,500 kilometers. This extension will enable the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE, contributing to the country’s energy infrastructure development.

The ownership of the ESTIDAMA Project is being transferred from ADNOC Gas to ADNOC, allowing for optimized capital efficiency. Despite this ownership change, ADNOC Gas will continue to manage the project, leveraging its expertise in construction and pipeline operations. ADNOC will cover the capital expenditures for this critical infrastructure project, ensuring its successful implementation and operation.

Approximately 70 percent of the contracts’ value is expected to flow back into the UAE economy through ADNOC’s In-Country Value (ICV) program, supporting local economic growth and diversification. This reinvestment will have a positive impact on the country’s economy, creating opportunities for local businesses and enhancing sustainability in the energy sector.

Dr. Ahmed Alebri, the chief executive officer of ADNOC Gas, emphasized the importance of the ESTIDAMA Project in expanding the UAE’s gas pipeline network. He highlighted the project’s role in bringing lower-cost and sustainable natural gas to more locations across the country, supporting the UAE’s goal of achieving gas self-sufficiency. The company takes pride in playing a leading role in meeting the growing demand for gas and contributing to the country’s energy security.

Looking ahead, ADNOC Gas will continue to expand its domestic business through the ESTIDAMA Project, receiving a variable transmission fee for the actual throughput of the pipeline. Additionally, the company will be responsible for operating and maintaining the infrastructure on behalf of ADNOC, ensuring the efficient and reliable delivery of natural gas to customers.

The ESTIDAMA Project represents a significant milestone in the UAE’s energy sector, enhancing the country’s gas infrastructure and supporting its economic development. With these new EPC contracts in place, ADNOC Gas is poised to further strengthen its position as a key player in the region’s energy industry.

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