UAE-based Target Engineering will pocket up to AED1.6 billion ($430 million) from a gas development deal in Abu Dhabi, parent company Arabtec Holding said on Thursday.
In a filing to Dubai Financial Market, the construction giant said Target's share of the AED3.2 billion project is expected to be between 40 and 50 percent.
On Wednesday, Arabtec Holding announced that a consortium including its wholly owned subsidiary, had been awarded the gas development project.
The Gas Development Expansion Phase II project has been awarded by ADNOC LNG. The project works will commence in October 2018 for a duration of 54 months.
Target's scope within the consortium, which also includes Spain’s Tecnicas Reunidas, is to construct the gas processing trains, supporting utilities and offsite facilities that will enable the transfer of 245 million standard cubic feet a day of additional low pressure gas to Habshan from Das Island in the UAE.
Work on ADNOC’s AED40 billion Integrated Gas Development program began in 2009, to enable the transfer of one billion cubic feet a day of high-pressure gas from the offshore Umm Shaif field, via Das Island, to ADNOC Gas Processing’s onshore facilities at Habshan and Ruwais. The program was completed in 2013.
Subsequently, phase 1 of the project was launched in 2015 and was completed last month, boosting ADNOC’s offshore gas processing capacity by 400 million cubic feet per day to 1.4 billion cubic feet per day.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.