ADNOC Gas has awarded contracts worth $550 million for the latest phase of the Sales Gas Pipeline Network Enhancement Program, known as Estidama.
A $254.6-million contract has been granted to NMDC Energy PJSC (formerly NPCC), a subsidiary of NMDC Group, for the engineering, procurement, and construction (EPC) of a new pipeline and related infrastructure. Another contract was awarded to Galfar Engineering & Contracting WLL Emirates.
This investment is part of ADNOC Gas’ Estidama program, designed to enhance and extend the UAE’s natural gas pipeline network from 3,200 km to over 3,500 km, boosting gas delivery volumes to the northern UAE.
The Estidama project involves multiple contracts with a total value of $2.4 billion. The first contract, awarded in 2021 and completed in 2023, focused on modifying existing pipelines. In July 2023, two additional EPC contracts, valued at $1.34 billion, were awarded for constructing new pipelines and a gas compression plant at ADNOC’s Habshan complex. NMDC Energy, in partnership with CAT International Ltd., secured one of these contracts, valued at over $600 million. This contract includes installing 191 km of new pipelines and additional infrastructure such as nitrogen and water pipelines.
Additionally, the ownership of Estidama is being transferred from ADNOC Gas to ADNOC. Following this transfer, ADNOC Gas will manage Estidama while ADNOC will cover capital expenditures. ADNOC Gas will pay ADNOC a variable transmission fee based on pipeline throughput and will continue to operate and maintain Estidama on ADNOC’s behalf.