ADNOC Gas Awards $550 Million in Contracts to Expand UAE Gas Pipeline Network
(P&GJ) — ADNOC Gas has announced the award of $550 million in engineering, procurement & construction (EPC) contracts for the ESTIDAMA project, a key expansion of the UAE’s gas pipeline network. This initiative, part of a broader $2.4 billion project, aims to increase natural gas delivery capacity to the Northern Emirates.
Under these contracts, NMDC Energy P.J.S.C and Galfar Engineering & Contracting W.L.L Emirates will undertake crucial construction activities. Approximately 70% of the contract value will circulate back into the UAE economy through ADNOC’s In-Country Value (ICV) program, supporting local economic growth.
The ESTIDAMA Project extends ADNOC Gas’ pipeline network from 3,200 to over 3,500 kilometers, enhancing capacity to meet rising gas demand. Ownership of ESTIDAMA is transferring from ADNOC Gas to ADNOC, streamlining capital deployment for ADNOC Gas while ensuring operational continuity under its management.
Dr. Ahmed Alebri, CEO of ADNOC Gas, emphasized, “This award underscores our commitment to expanding UAE’s gas infrastructure, enhancing accessibility to sustainable natural gas across the nation. With ADNOC assuming ownership, ADNOC Gas remains focused on operational excellence and maximizing shareholder value.”
ADNOC Gas will continue to operate ESTIDAMA, paying ADNOC a variable transmission fee based on pipeline throughput. This arrangement supports ADNOC Gas’ strategic growth in the domestic market while reinforcing the UAE’s energy self-sufficiency goals.
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