Adnoc LNG Signs $1bn Expansion Contract
Abu Dhabi exporter Adnoc LNG signed September 26 its contract with Spanish contractor Tecnidas Reunidas (TR) and UAE-based Target Engineering and Construction to expand its facilities.
The new agreement would “further integrate our offshore and onshore gas systems” and “maximise the value of our gas assets,” said Adnoc LNG's acting CEO Fatema al Nuaimi after the signing. The award of the $860mn contract was announced last week by TR and there is an option to increase it by $150mn.
Adnoc LNG said the second phase of the integrated gas development expansion (IGD-E) project will take 54 months to complete, and add 245mn ft3/d (2.5bn m3/yr) of associated gas to the 1.4bn ft3/d (14.5bn m3/yr) of offshore gas sent from Das Island to Adnoc Gas Processing’s Habshan gas facilities, enabling some to be used to generate power. It represents an increase of 17.5% in feed gas supply. Contract scope includes building a 60mn ft3/d booster compression train and two feed gas compression and dehydration trains each of 123mn ft3/d. TR will lead the consortium while Target will take charge of construction work on Das Island.
Adnoc’s $11bn IGD program began in 2009, to enable the transfer of 1bn ft3/d of high-pressure gas from the offshore Umm Shaif field, via Das Island, to Adnoc Gas Processing’s onshore facilities at Habshan and Ruwais; it was completed in 2013.
Subsequently, phase 1 of the IGD-E project was launched in 2015 and completed last month, boosting Adnoc’s offshore gas processing capacity by 400mn ft3/d to 1.4bn ft3/d.
Adnoc LNG is 70%-owned by Abu Dhabi state oil producer Adnoc, with 15%, 10%, and 5% stakes held respectively by Mitsui, BP and Total. It has operated since the early 1980s. Its main offtaker Japan's Jera last month slashed its contract from some 4.7mn mt/yr to 0.5mn mt/yr with effect from next year – thus obliging Adnoc LNG to seek new term or spot customers.
The agreement was signed by Adnoc LNG's acting CEO Fatema al Nuaimi (centre), Tecnidas Reunidas general manager Arthur Crossley Sanz (right) and Target CEO Chaouci Yassine (left) (Photo credit: Adnoc LNG)