ADNOC Gas Awards $2.1 Billion Contracts For Ruwais LNG Project Infrastructure

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ADNOC Gas plc, a leading integrated gas processing company, announced Wednesday the awarding of three contracts worth $2.1 billion (around AED 8 billion) to support the Ruwais LNG Project.

The Ruwais LNG plant will be one of the world's lowest-carbon-intensity LNG facilities, using artificial intelligence and advanced digital technologies to enhance safety, reduce emissions, and improve efficiency.

Once operational, the Ruwais LNG plant will more than double ADNOC Gas's current LNG production capacity, reaching over 15 million tonnes per year (mtpa). The facility will include two liquefaction trains, each capable of processing 4.8 mtpa, and will be powered by clean grid electricity, marking a first in the Middle East and North Africa region.

The largest contract, worth $1.24 billion for the LNG pre-conditioning plant (LPP), was awarded to a consortium of Engineering for the Petroleum and Process Industries (ENPPI) and Petrojet, WAM reported.

The China Petroleum Pipeline Engineering Company received a $514 million contract to build transmission pipelines. Petrofac Emirates LLC was awarded a $335 million contract to develop new compression facilities.

These contracts cover the construction of an LNG pre-conditioning plant (LPP), compression facilities, and transmission pipelines to supply feedstock to the project. The LPP and compression facilities will be built within ADNOC Gas's Habshan 5 plant, which is part of the large-scale Habshan Complex.

This complex, consisting of five plants, has a combined gas processing capacity of 6.1 billion standard cubic feet per day. The new transmission pipelines will link the Habshan Complex to the Ruwais LNG facility.

"These contract awards reaffirm ADNOC Gas' commitment to delivering sustainable growth and maximizing shareholder value. We are investing in world-class infrastructure and innovative technologies as we expand our capacity in LNG liquefaction and strengthen our position as a global player," Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said.

"The awards also underline our commitment to making strategic and targeted investments that enable the delivery of our most significant projects, allowing us to continue meeting our customers' demands internationally," she added.

ADNOC Gas is developing the Ruwais LNG project on behalf of its largest shareholder, ADNOC. The costs for the LPP, compression facilities, and transmission pipelines are not included in ADNOC Gas's previously announced expenses for acquiring ADNOC's majority stake in the Ruwais LNG project once it becomes operational in 2028.

The three contracts will build essential infrastructure to supply feedstock to the Ruwais LNG export facility. This investment is part of ADNOC Gas's $15 billion capital expenditure plan through 2029, outlined in its recent strategy update.