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UAE: EPC Contract

Adnoc Hands over 860 Million Dollar Contract for Phase 2 of IGD-E Project

| Editor: Ahlam Rais

The contract 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.
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The contract 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. (Source: Abu Dhabi National Oil Company)

Adnoc signed the contract with a consortium of Spain's Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company. Tecnicas Reunidas is expected to lead engineering and procurement of the project while Target Engineering Construction Company will lead construction and commissioning works.

Abu Dhabi/UAE – Adnoc LNG, a subsidiary of the Abu Dhabi National Oil Company, signed, today, the Engineering, Procurement, Construction and Commissioning (EPC) contract for the second phase of the Integrated Gas Development Expansion (IGD-E) project. The agreement was signed with a consortium of Spain's Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company. The contract is valued at 860 million dollars of which around half will flow into the local economy through Adnoc’s focus on maximising ‘In-Country Value’.

The contract, between Adnoc LNG and Technicas Reunida along with the 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.

The second phase of the IGD-E project will take 54 months to complete. It will add 245 million cubic feet per day of associated gas to the 1.4 billion 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.

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It includes the construction and commissioning of new gas facilities on the Das Island including construction of a new Booster Compression Train with a capacity of 60 million cubic feet per day. It also comprises two feed gas compression and dehydration trains, each having a capacity of 123 million cubic feet per day and two amine-based fuel gas treatment units with 80 million 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 11 billion dollar 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 Integrated Gas Development Expansion project was launched in 2015 and completed last month, boosting Adnoc’s offshore gas processing capacity by 400 million cubic feet per day to 1.4 billion cubic feet per day. Phase I included the construction of a 4th gas dehydration unit and dry gas compression aftercooler on Das Island; gas pipelines, with a 117 kilometer offshore segment and 114 kilometer onshore segment; condensate pipelines and modifications to the Habshan gas processing complex.

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