ADNOC LNG, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has signed the Engineering, Procurement and Construction (EPC) contract for the second phase of its Integrated Gas Development Expansion (IGD-E) project with a consortium of Spain's Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company.
The contract is valued at AED 3.16 billion (US$860 million) of which around half will flow into the local economy through ADNOC’s focus on maximising in-country value.
The agreement, between ADNOC LNG and the Technicas Reunida and Target Engineering Construction Company joint venture, was signed by Fatema Mohamed Al Nuaimi, Acting CEO of ADNOC LNG; Arthur Crossley Sanz, General Manager of Tecnicas Reunidas; and Chaouci Yassine, CEO of Target Engineering Construction Company.
After the signing ceremony, Al Nuaimi said: “This agreement is a significant milestone as we work across the gas value chain to further integrate our offshore and onshore gas systems. It will enable us to deliver greater efficiency and performance, maximise the value of our gas assets and pursue our strategic objective to ensure a sustainable and economic gas supply that meets Abu Dhabi’s growing energy needs.”
“We have awarded the contract after a rigorous tender process that took into account the substantial in-country value benefits that will flow from this project, as we continue to maximise value from our hydrocarbon resources, in line with the leadership’s directives, and capture value and financial return here in the UAE for the benefit of the nation.”
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The second phase of the IGD-E project will take 54 months to complete. It will add 245 million ft3/d of associated gas to the 1.4 billion ft3/d of offshore gas sent from Das Island to ADNOC Gas Processing’s Habshan gas facilities to be processed for use in power generation.
The full scope of the contract encompasses engineering, equipment and material supply, construction, installation, testing and commissioning of compression, drying and gas treatment units, as well as power generation and other auxiliary services. It includes the construction and commissioning of new gas facilities on Das Island including construction of a new Booster Compression Train with a capacity of 60 million ft3/d, as well as two Feed Gas Compression and Dehydration Trains, each having a capacity of 123 million ft3/d and two amine-based Fuel Gas Treatment Units with 80 million ft3/d capacity each.
Tecnicas Reunidas will lead the consortium and carry out the engineering and procurement for the project, while Target Engineering Construction Company will lead the construction and commissioning works on Das Island.
Work on ADNOC’s AED 40 billion (US$11 billion) Integrated Gas Development program began in 2009, to enable the transfer of one billion ft3/d of high-pressure gas from the offshore Umm Shaif field, via Das Island, to ADNOC Gas Processing’s onshore facilities at Habshan and Ruwais. The program was completed in 2013.
Subsequently, Phase 1 of the IGD-E project was launched in 2015 and was completed last month, boosting ADNOC’s offshore gas processing capacity by 400 million ft3/d to 1.4 billion ft3/d. Phase I included the construction of a fourth gas dehydration unit and dry gas compression aftercooler on Das Island; gas pipelines, with a 117 km offshore segment and 114 km onshore segment; condensate pipelines; and modifications to the Habshan gas processing complex.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26092018/adnoc-lng-awards-epc-contract-for-phase-2-of-igd-e-project/