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ADNOC Announces $548Mln Contract for New Main Gas Line

A picture shows the headquarters of UAE's state oil company ADNOC in Dubai on July 27, 2022. (AFP)
A picture shows the headquarters of UAE's state oil company ADNOC in Dubai on July 27, 2022. (AFP)
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ADNOC Announces $548Mln Contract for New Main Gas Line

A picture shows the headquarters of UAE's state oil company ADNOC in Dubai on July 27, 2022. (AFP)
A picture shows the headquarters of UAE's state oil company ADNOC in Dubai on July 27, 2022. (AFP)

The Abu Dhabi National Oil Company (ADNOC) announced Monday awarding a AED2.01 billion ($548 million) contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi.

The award will increase Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), supporting ADNOC’s plans to enable gas self-sufficiency for the United Arab Emirates and cater for increasing global energy demand.

The new pipeline will cater for the increased volume of associated gas produced by Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025.

ADNOC Upstream Executive Director Yaser Saeed al-Mazrouei, said: “This contract award will enable us to produce more gas as we increase production capacity from Lower Zakum field.”

It will support ADNOC’s integrated gas masterplan, which is driving competitive gas recovery to enable gas self-sufficiency for the UAE and industrial growth, while also helping to meet the increasing global demand for energy.

The project will be completed in 2025 and will see the construction of a new subsea pipeline that will run 85 kilometers from Zakum West Super Complex to Das Island.

It also includes provisions to construct, install and test a new platform at the super complex, as well as a new gas receiving facility at Das Island.

Natural gas is playing an increasingly important role in the energy transition as both a feedstock and a fuel as it burns with significantly lower-carbon intensity than coal.

With this award, ADNOC Offshore and its strategic international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi's offshore operations.

The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities and a $1.1 billion contract awarded to ADNOC Logistics and Services to enhance offshore operations.

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China’s Deflationary Pressures Build in Sept, Consumer Inflation Cools

People arrive at the Beijing railway station in Beijing on October 10, 2024. (AFP)
People arrive at the Beijing railway station in Beijing on October 10, 2024. (AFP)
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China’s Deflationary Pressures Build in Sept, Consumer Inflation Cools

People arrive at the Beijing railway station in Beijing on October 10, 2024. (AFP)
People arrive at the Beijing railway station in Beijing on October 10, 2024. (AFP)

China's consumer inflation unexpectedly eased in September, while producer price deflation deepened, heightening pressure on Beijing to roll out more stimulus measures quickly to revive flagging demand and shaky economic activity.

Finance Minister Lan Foan told a news conference on Saturday there will be more "counter-cyclical measures" this year, but officials did not provide details on the size of fiscal stimulus being prepared, which investors hope will ease deflationary pressures in the world's second-largest economy.

The consumer price index (CPI) rose 0.4% from a year earlier last month, against a 0.6% rise in August, data from the National Bureau of Statistics (NBS) showed on Sunday, missing a 0.6% increase forecast in a Reuters poll of economists.

The producer price index (PPI) fell at the fastest pace in six months, down 2.8% year-on-year in September, versus a 1.8% decline the previous month and below an expected 2.5% decline.

Chinese authorities have stepped up stimulus efforts in recent weeks to spur demand and help meet an around 5.0% economic growth target for this year, though some analysts say the moves may only offer temporary relief for the economy and stronger measures are needed soon.

The central bank in late September announced the most aggressive monetary support measures since the COVID-19 pandemic, including numerous steps to help pull the property sector out of a severe, multi-year slump, including mortgage rate cuts.

With little new from Saturday's Ministry of Finance briefing, some analysts are now hoping that a meeting of China's parliament expected in coming weeks will unveil more specific proposals.

However, many China watchers say Beijing also needs to firmly address more deeply-rooted structural issues such as overcapacity and sluggish consumption.

Excessive domestic investment and weak demand have pushed down prices and forced companies to reduce wages or fire workers to cut costs.

CPI was unchanged month-on-month, versus a 0.4% gain in August and below an estimated 0.4% increase.

Food prices perked up 3.3% on-year in September compared with a 2.8% rise in August, while non-food prices was down 0.2%, reversing 0.2% uptick in August.

Among non-food items, the decline in energy prices deepened, and tourism prices switched to down from up with declines in airfares and hotel accommodation prices widening, said the NBS in an accompanying statement.

Core inflation, which excludes volatile food and fuel prices, stood at 0.1%, down from 0.3% in August, also hinting that deflation pressures were mounting.