ADNOC Awards $17 Billion of Abu Dhabi Gas Projects

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Abu Dhabi National Oil Company (ADNOC) has taken a final investment decision on its massive Hail and Ghasha Offshore Development project worth almost US$17 billion.

The Hail and Ghasha development, located offshore Abu Dhabi, is set to produce more than 1.5 billion standard cubic feet per day (bscfd) of gas before the end of the decade. It is also notable for being designed from the outset to have Net Zero Emissions with the goal of capturing 1.5 million tonnes per year (mtpa) of CO2.

The company has awarded two engineering, procurement and construction (EPC) contracts. The first contract for the offshore facilities, including facilities on artificial islands and subsea pipelines, was awarded to a joint venture between National Petroleum Construction Company (NPCC) (Abu Dhabi, United Arab Emirates) and Saipem SpA (San Donato Milanese, Italy), and is worth approximately US$8.2 billion. The second contract, worth roughly US$8.7 billion, to deliver the onshore facilities, including CO2 and sulfur recovery and handling, went to Italian firm Tecnimont (Milan, Italy), part of MAIRE Group. The scope of work includes two gas processing units, three sulfur recovery sections, the associated utilities and offsites as well as export pipelines. Industrial Info is tracking 21 associated projects in the first package of the development, worth almost US$8 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Abdulmunim Al Kindy, ADNOC upstream executive director, said: "The final investment decision for Hail and Ghasha is a major milestone for ADNOC and our strategic partners and we are delighted to progress this pioneering project with net zero carbon dioxide emissions, significantly boosting ADNOC's carbon capture capacity as we work toward a lower carbon future. The project will drive in-country value, provide highly skilled career opportunities for UAE Nationals and stimulate socio-economic growth for the nation. Natural gas is an important transition fuel and ADNOC will continue to responsibly unlock its gas resources to enable gas self-sufficiency for the UAE, grow our export capacity and support global energy security."

Alessandro Bernini, MAIRE Group chief executive officer, commented: "Today we have been awarded the largest contract ever for the MAIRE Group, a multi-billion-dollar project which will significantly boost the delivery of our 10-year strategic plan. This award, a landmark recognition of Made in Italy Engineering, is a demonstration not only of our leadership in sulfur recovery and in gas treatment plants but, more broadly, of our undisputed execution capabilities as well as our technological expertise in designing carbon-free industrial solutions."

The Hail and Ghasha Development Project is part of the Ghasha Concession, which ADNOC claims is the world's largest offshore gas development of its kind. The Concession includes the Hail, Ghasha, Hair Dalma, Bu Haseer, Satah, Nasr, SARB, Shuweihat and Mubarraz offshore fields. The Hail and Ghasha project will also serve as a hub for the other offshore fields. Located in shallow waters, and with the goal of minimizing its environmental impact, the project will see the construction of 10 artificial islands and two causeways, as well as the expansion of an existing island, Al Ghaf.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).