Energy transmission works are an important cornerstone to underpin socio-economic development, it was announced on July 9, 2023, that a consortium comprising state oil construction companies PJSC and C.A.T International Limited has been awarded major contracts totalling $1.34 billion by ADNOC Gas.

Under the Sales Gas Pipeline Network Enhancement (ESTIDAMA) program, these contracts are to assist in the development of ADNOC's gas pipeline network.ADNOC Gas is set to revolutionise gas distribution in the UAE market with an ambitious expansion plan to increase its pipeline network from more than 3,200 km to more than 3,500 km, an increase of around 300 km.

The strategically expanded pipeline network will drive ADNOC Gas's continued growth, further cementing its position as a top supplier of sustainable natural gas in the UAE. The move is in line with the company's overall plan to increase market share and attract a larger customer base, thereby providing the region with natural gas that is both reliable and ecologically sound.

Ahmed Mohamed Alebri, Chief Executive Officer of ADNOC Gas, stressed that the strategic network expansion aims to bring low-cost, sustainable and cleaner gas to various regions in the UAE.

He said natural gas is a cost-competitive and environmentally friendly fuel, and the expanded pipeline will contribute to further earnings growth for ADNOC Gas and its shareholders. This move is in line with their commitment to achieving natural gas self-sufficiency for the UAE.

More than 70% of the contract value will be reinvested in the UAE economy thanks to ADNOC's strong Domestic Value (ICV) program, which aims to help local industries and strengthen the UAE's local value chain.

The first part of the ESTIDAMA program consisted of several phases, including modification of the existing pipeline, and was successfully completed in 2023. The construction of more pipelines and gas compression facilities in Habshan is part of the second and third phases, which are currently underway. These projects will provide significant raw gas supply infrastructure to key customers across the UAE.

The UAE's entire gas value chain is linked by ADNOC's integrated master plan to provide cost-effective and sustainable gas supply to meet domestic and global demand. The strategy calls for developing unexplored resources and enhancing gas recovery from existing assets. Editor/Xu Shengpeng