Abu Dhabi – Mubasher: ADNOC Gas announced contracts valued at $1.34 billion to expand its natural gas pipeline network, according to a press release.
The agreements were awarded to Petrofac Emirates LLC as well as a consortium including National Petroleum Construction Company and CAT International Ltd.
Meanwhile, the new pipeline will extend the ADX-listed company’s existing pipeline network from nearly 3,200 kilometres (km) to more than 3,500km.
This aligns with the sales gas pipeline network enhancement (ESTIDAMA) programme to secure the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE.
ADNOC Gas noted that the strategic pipeline extension will reinforce its growth strategy to enlarge its market share and widen its customer base.
More than 70% of the contracts’ value is expected to flow back into the UAE economy, as a part of the In-Country Value (ICV) programme, which aims to enhance the country's local value chain by supporting local manufacturing and local industries.
Ahmed Mohamed Alebri, CEO of ADNOC Gas, commented: “Our strategic network expansion will bring the advantages of lower-cost, sustainable, and cleaner gas to more locations across the UAE by enhancing industrial access to natural gas, a cost-competitive and lower-carbon intensive fuel.”
“The expanded pipeline will drive further growth for ADNOC Gas and our shareholders as we deliver on our mandate to achieve gas self-sufficiency for the UAE,” Alebri stated.
During the first quarter (Q1) of 2023, ADNOC Gas generated net income valued at $1.30 billion, compared to pro-forma adjusted net income of $1.20 billion in the year-ago period.
