Abu Dhabi National Oil Company (ADNOC) has announced, the award of a $548 million (AED2.01 billion) contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi, according to the company's release. The award will increase Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), supporting ADNOC’s plans to enable gas self-sufficiency for the United Arab Emirates (UAE) and cater for increasing global energy demand.
The Engineering, Procurement and Construction (EPC) contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process. Over 75% of the award value will flow back into the UAE economy under ADNOC's In-Country Value (ICV) program and job opportunities will be created for UAE Nationals by the contractor, providing them practical exposure in executing EPC contracts.
The new pipeline will cater for the increased volume of associated gas produced by Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025.
The project will be completed in 2025 and it will see the construction of a new subsea pipeline that will run 85 kilometers from Zakum West Super Complex to Das Island. It also includes provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.
ADNOC’s gas masterplan links every part of the gas value chain to further unlock Abu Dhabi’s abundant gas reserves enabling domestic gas self-sufficiency, industrial growth and diversification, as well as to meet growing global gas demand. Natural gas is playing an increasingly important role in the energy transition as both a feedstock and a fuel as it burns with significantly lower-carbon intensity than coal.
With this award, ADNOC Offshore and its strategic international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi's offshore operations. The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities and a $1.1 billion contract awarded to ADNOC Logistics and Services to enhance offshore operations.