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Abu Dhabi hands out EPC contracts worth $1.6bn

Three packages awarded to international consortia

Abu Dhabi Gas Industries (GASCO) and Abu Dhabi Gas Liquefaction (ADGAS) have awarded contracts worth $1.6bn to expand the UAE’s natural gas processing facilities, the Emirates News Agency reports.

Abu Dhabi National Oil Company, ADNOC, has initiated the IGD-E project as a priority in developing and expanding current facilities to boost gas exports from offshore to onshore in order to satisfy the increasing demand for gas locally.

The following contracts have been awarded: Construction and Commissioning (EPC) works for the Integrated Gas Development Expansion (IGD-E) Phase 1 Project on Lump Sum Turnkey Basis, as follows; Das Island facilities (Package No. 1), Offshore Pipeline (Package No. 2), Onshore Pipeline and Habshan Modifications (Package No. 3).

The first package consists of the following new facilities in Das Island that will be required for increasing the offshore gas processing capacity: new 4th gas dehydration train, new common dry gas compression after cooler, land reclamation.

The $491mn EPC contract was awarded to the consortium, Tecnimont, Italy and Archirodon, Greece, MM, with a completion period of 40 months.

The initial phase of the project execution will commence from the contractor’s Home Office in Milan, Italy and will later move to the site at Das Island for construction activities.

The offshore pipeline package consists of the 117 km offshore segment of the new 42″ IGD-E pipeline.

The selected offshore route for the new IGD-E pipeline parallels the existing 30″ OAG pipeline route, which runs from Das Island to the pipeline corridor shore crossing tie-in at Ras Al Qila.

The EPC contract was awarded to M/s National Petroleum Construction Company (NPCC), UAE, and is worth $410mn, and is scheduled to take 40 months to complete.

The initial phase of the project execution will commence from the contractor’s office in Abu Dhabi, UAE, and will later move to the offshore sites for construction activities.

The third package consists of the following new facilities that will be required to handle the additional offshore gas, new 114 km onshore segment of the 42″ IGD-E pipeline.

The selected onshore route continues from Ras Al Qila parallel the existing 30″ OAG pipeline to a point near Habshan Area, then detours from OAG Pipeline Habshan 5 Plant with a new established corridor.

New units are required at Habshan 5 to receive the gas from the new 42″ IGD-E pipeline. The new Habshan 5 units will also be the destination of additional onshore sour gas from ADCO’s North East Bab Development (NEB-III).

The EPC contract was awarded on 3rd February 2015 to Tecnicas Reunidas, and is worth $685mn.

GASCO and ADGAS said they will direct their EPC contractors to maximise use of local contents in terms of materials, equipment and services.

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