Abu Dhabi signs $3.6bn gas deals

Abu Dhabi Gas Development Company, an Abu Dhabi National Oil Company (Adnoc) subsidiary, signed four engineering, procurement, construction and commissioning (EPCC) contracts on Monday with total agreement price of $3.6 billion (Dh13.3bn) as part of an overall programme to develop the Shah sour gas reservoir.

Two contracts were signed with Italy-based Saipem for sulphur recovery package, valued at $1.45bn, and the product pipelines package, valued at $196m, with a combined contract award of $1.64bn.

Utilities and offsite package contract, valued at $1.49bn was signed with South Korea-based Samsung Engineering Company.

Gas gathering package contract valued at $463m was signed with a joint venture between Spain-based Tecnicas Reunidas and India-based Punj Lloyd.

The Shah Gas Development Project (SGD) represents a new era for production of sour gas that was previously considered too difficult to process.

In order to manage and mitigate the risks, Abu Dhabi Gas Development Company has implemented a plant design that places primary emphasis on all aspects of health, safety and the environment.

Development of the Shah sour gas field is a significant part of Abu Dhabi's plan to meet the growing domestic demand for gas. The sourness of the feed gases along with the magnitude of processed gas and produced sulphur will set a new benchmark for the world gas processing and treating industry.

The new SGD facilities will be designed to process about one billion standard cubic feet of gas per day). From this feed gas stream, the project will provide 540 million standard cubic feet of gas per day of clean natural gas for the Abu Dhabi gas network while supplying 4,400 tonnes per day of natural gas liquids, 35,000 barrels per day of condensates and 9,200 tonnes per day of elemental sulphur.

The project activities will spread from Liwa through Habshan to Ruwais, covering a wide geographical area.

The project will require a large number of workforce (about 30,000 people) which would be deployed in Shah area. Abu Dhabi Gas Development Company will encourage all of the awarded contractors to provide opportunity for local industries in the UAE.

This project will also provide excellent opportunities to UAE nationals for training and learning new technologies through exposure and interaction with specialists, both in the UAE and abroad. This will enable them to develop their competencies and expertise in the area of technology and project management and also to take on responsibilities in operation and maintenance when the plant is operational.

The project will have a direct positive impact in accelerating the development, which is in-line with government plans and national energy strategy.

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