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ADNOC Gas plc has awarded engineering, procurement & construction (EPC) contracts worth $550 million for the expansion of its natural gas pipeline network, and has also transferred the ownership of the project to ADNOC.
The EPC contracts for the UAE sales gas pipeline network enhancement (ESTIDAMA) project were awarded to NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates, a statement said on Monday.
Approximately 70% 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.
Separately, ownership of ESTIDAMA, which comprises several packages with a total value of $2.4 billion, is being transferred from ADNOC Gas to the parent company, with ADNOC covering the capital expenditures.
ADNOC Gas, which will be paid to operate and maintain ESTIDAMA on behalf of ADNOC, will continue to expand its domestic business through the pipeline paying the energy major a variable transmission fee for actual throughput of the pipeline.
(Writing by Brinda Darasha; editing by Daniel Luiz)
