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ADNOC Gas plc, a subsidiary of the state energy company Abu Dhabi National Oil Company, on Monday announced the award of $1.34 billion in contracts to expand its new natural gas pipeline network in the northern region of the UAE.
The contracts were awarded to Petrofac Emirates LLC and a consortium between National Petroleum Construction Co. PJSC and C.A.T International Ltd., ADNOC Gas, a subsidiary of the state energy company Abu Dhabi National Oil Company, said in a regulatory disclosure on ADX.
Ahmed Mohamed Alebri, Chief Executive Officer of ADNOC Gas, said: “Our strategic network expansion will bring the advantages of lower-cost, sustainable and cleaner gas to more locations across the UAE by enhancing industrial access to natural gas, a cost-competitive and lower-carbon intensive fuel. The expanded pipeline will drive further growth for ADNOC Gas and our shareholders as we deliver on our mandate to achieve gas self-sufficiency for the UAE.”
The new pipeline enhances ADNOC Gas’ network to over 3,500 kilometers.
Over 70% of the contracts’ value is expected to flow back into the UAE economy as part of ADNOC’s In-Country Value (ICV) program, which aims to enhance the local value chain by encouraging local manufacturing and supporting local industries.
ADNOC Gas has access to 95% of the UAE's natural gas reserves, estimated to be the seventh largest globally. It supplies more than 60% of the UAE's gas needs. Early this year, raised $2.5 billion in one of the biggest IPOs globally.
(Writing by Brinda Darasha; editing by Seban Scaria)
