ADNOC Gas lets contract for Estimada project

ADNOC Gas has let contracts valued at $550 million for work on the next phase of the Sales Gas Pipeline Network Enhancement Program (Estidama).

A $254.6-million contract was awarded to NMDC Energy PJSC (formerly NPCC), a subsidiary of NMDC Group, for engineering, procurement, and construction (EPC) of a new pipeline and associated infrastructure. 

A separate contract was awarded to and Galfar Engineering & Contracting WLL Emirates. 

The award is part of ADNOC Gas' broader Estidama program, which aims to upgrade and expand UAE's natural gas pipeline network operated by ADNOC Gas to more than 3,500 km from 3,200 km increasing gas delivery volumes to the northern UAE.

The Estidama pipeline project comprises several packages with a total value of $2.4 billion, with the first contract awarded in 2021 and completed in 2023, delivering early modification works on existing pipelines.

In July 2023, the second and third Estidama EPC contracts were awarded at a combined value of $1.34 billion, which includes the construction of new pipelines and a gas compression plant at ADNOC’s Habshan complex, enabling the delivery of essential feed gas to customers across the UAE (OGJ Online, Aug. 9, 2023). NMDC Energy, in a consortium with CAT International Ltd., secured one of the contracts. Valued at over $600 million, that contract includes the installation of 191 km of new sales gas pipelines, along with additional infrastructure such as nitrogen and water pipelines and a jump-over connection.

Ownership transfer

Separately, ownership of Estidama is being transferred to ADNOC from ADNOC Gas. Following the ownership transfer, ADNOC Gas will continue to manage Estidama, with ADNOC covering capital expenditures for the project. ADNOC Gas will pay ADNOC a variable transmission fee for actual throughput of the pipeline and will be paid to operate and maintain Estidama on behalf of ADNOC.