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Tue 9 Jan 2018 03:58 PM

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UAE's ADNOC awards key deals for gas mega project

Contracts relate to project that could meet nearly 20% of the UAE's gas demand by the second half of the next decade

UAE's ADNOC awards key deals for gas mega project
The Adnoc headquarters in Abu Dhabi

Abu Dhabi National Oil Company (ADNOC) on Tuesday awarded two design and engineering contracts for its planned offshore ultra sour gas mega project, which consists of the Hail, Ghasha and Dalma fields.

Bechtel (UK) was awarded Hail & Ghasha front end engineering design (FEED) contract and TechnipFMC (UAE) was awarded the deal for Dalma. Both contracts are said to be worth hundreds of millions of dirhams.

The project, in the north-western area of Abu Dhabi, could meet nearly 20 percent of the UAE’s gas demand by the second half of the next decade, ADNOC said in a statement.

Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO said: “The growth in energy demand in Abu Dhabi, and the wider UAE, has prompted ADNOC to harness its gas resources, as part of its 2030 transformational strategy.

"This FEED award provides ADNOC with further smart growth potential by unlocking our undeveloped sour gas reserves and will help us to deliver a key strategic imperative which is to ensure a sustainable and economic gas supply.”

In addition to awarding the FEED contracts, ADNOC said it is evaluating five technology licensors contracts, critical to the successful execution of the FEED phase.

Abdulmunim Saif Al Kindy, director of ADNOC’s Upstream business said: “In progressing with these projects, we will create the potential to capitalise on our success and experience in ultra-sour gas production, gained from the development of the Shah field, the largest project of its kind in the world.”

The Hail, Ghasha and Dalma project taps into Abu Dhabi’s Arab formation, which is estimated to hold multiple trillions of cubic feet of recoverable gas and from which the project is expected to produce more than one billion cubic feet of gas per day (cfd), enough gas to provide to two million homes with electricity.

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