Investment supports ADNOC’s objective of enabling gas self-sufficiency for the UAE Image Credit: Adnoc Group/ Instagram

Dubai: The Abu Dhabi energy giant ADNOC has awarded a Dh1.87 billion engineering, procurement, and construction (EPC) contract to expand production capacity of its Shah Sour Gas Plant. The investment supports ADNOC’s objective of enabling gas self-sufficiency for the UAE.

The contract for the Optimum Shah Gas Expansion (OSGE) project was awarded by ADNOC Sour Gas (ASG), a subsidiary, to Italy’s Saipem after a tender. Over 50 per cent of the award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) programme.

The OSGE project is expected to be completed in 2023 and will increase processing capacity of the Shah Gas Plant from 1.28 billion standard cubic feet per day to 1.45 billion. Shah, located 210 kilometers southwest of Abu Dhabi city, came on-stream in 2015.

“The In-Country Value generated from the EPC contract award will help to stimulate growth of the private sector and local economy as we navigate the post COVID-19 recovery and continue to meet the future energy needs of our nation,” said Yaser Saeed Almazrouei, ADNOC’s Upstream Executive Director

The scope of work also includes the extension of the existing gas gathering network and new pad facilities. The plant modifications have been designed for integration with existing facilities with no impact on the integrity of the plant while minimizing impact on production during construction, interfacing and commissioning.

“Shah’s expansion will optimize the plant as well as improve both capacity and higher-end product recoveries, further growing our contribution as a safe and reliable supplier of gas to ADNOC and the UAE,” said Tayba Al Hashemi, CEO of ASG. “It enhances Shah’s position as a hub of sour operations expertise, developing the skills and experience of the next generation of Emirati professionals.”

ASG is a joint venture between ADNOC and Occidental and adopts an integrated single-field approach that covers upstream, midstream, and downstream activities. It is the only company in the world that processes more than 1 billion SCFD of ultra-sour gas from a single gas plant, which also produces approximately 5 per cent of the world’s granulated sulfur.