The UAE's Dodsal Group has won an estimated $450m contract to build two pipelines from a gas processing plant south west of Abu Dhabi to industrial users to the north east of the capital, two sources said on Sunday.
The 297km pipeline will supply gas to Emirates Aluminium (EMAL) and other industries in Taweelah, a new industrial hub between Abu Dhabi and Dubai.
"The contract was awarded a few weeks ago and work has begun," one source involved in the project said, adding that completion is scheduled for 2015.
A source at Abu Dhabi Gas Industries Company (Gasco) confirmed the company awarded the contract to Dodsal.
Habshan is an oil and gas hub in the western part of the emirate of Abu Dhabi.
Gasco is a joint venture between Abu Dhabi National Oil Company (Adnoc) which owns 68 percent and Shell (15 percent) , Total (15 percent) and Partex (2 percent).
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.