ADNOC LNG awards US$860mn EPC contract for Phase 2 of IGD-E project

ADNOC LNG 27During the signing ceremony. (Image source: ADNOC)ADNOC LNG, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has signed an engineering, procurement and construction (EPC) contract for the second phase of the 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 US$860mn of which around half will flow into the local economy through ADNOC’s focus on maximizing 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, maximize 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 maximize 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.”

The second phase of the IGD-E project will take 54 months to complete. It will add 245 mcf per day of associated gas to the 1.4 bcf per day 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 mcf per day, as well as two Feed Gas Compression and Dehydration Trains, each having a capacity of 123 mcf per day and two amine-based Fuel Gas Treatment Units with 80 mcf per day 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.

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