ADNOC LNG awards EPC contract to consortium by Tecnicas Reunidas, Target Engineering

ADNOC LNG signed the 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 agreement, between ADNOC LNG and the Technicas Reunidas and Target Engineering Construction Company joint venture, was signed by Fatema Mohamed Al Nuaimi (centre), acting CEO of ADNOC LNG; Arthur Crossley Sanz (right), general manager of Tecnicas Reunidas; and Chaouci Yassine, CEO of Target Engineering Construction Company.
The agreement, between ADNOC LNG and the Technicas Reunidas and Target Engineering Construction Company joint venture, was signed by Fatema Mohamed Al Nuaimi (centre), acting CEO of ADNOC LNG; Arthur Crossley Sanz (right), general manager of Tecnicas Reunidas; and Chaouci Yassine, CEO of Target Engineering Construction Company.

The contract is valued at $860mn of which around half will flow into the local economy through ADNOC’s focus on maximising in-country value.

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.”

The second phase of the IGD-E project will take 54 months to complete. It will add 245mn cubic feet per day of associated gas to the 1.4bn cubic feet 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 60mn cubic feet per day, as well as two feed gas compression and dehydration trains, each having a capacity of 123mn cubic feet per day and two amine-based fuel gas treatment units with 80mn cubic feet 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.

Work on ADNOC’s $11bn integrated gas development programme began in 2009, to enable the transfer of one billion cubic feet a day 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 programme 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 400mn cubic feet per day to 1.4bn cubic feet per day.

Phase 1 included the construction of a 4th gas dehydration unit and dry gas compression aftercooler on Das Island; gas pipelines, with a 117km offshore segment and 114km onshore segment; condensate pipelines; and modifications to the Habshan gas processing complex.

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