Petrofac signs $1.34-bln pipeline contract in the UAE

ADNOC Gas has signed a USD 1.34-billion contract with Petrofac and its partners for expansion of its pipeline network in the UAE, the Emirati state-owned gas entity announced on Monday.

The deal covers constructing around 300 kilometres of pipeline to build the ADNOC Gas’ pipeline system to around 3,500 kilometres and satisfy demand in the northern regions of the country.

The contract was signed with a consortium consisting of Petrofac, National Petroleum Construction Company and C.A. T. Group.

“Our strategic network expansion will bring the advantages of lower-cost, sustainable and cleaner gas to more locations across the UAE by enhancing industrial access to natural gas, a cost-competitive and lower-carbon intensive fuel,” said Ahmed Mohamed Alebri, CEO of ADNOC Gas.

The works are part of the UAE’s sales gas pipeline network enhancement programme, which includes constructing new pipelines and a gas compression plant in Habshan.

The first package of the programme was handed out in 2021 with works completed in 2023.

The second and third packages are now being awarded, including Petrofac signing an EPC contract for the construction of the Habshan gas compression plant.

ADNOC Gas supplies around 60% of the UAE’s gas sales demand.