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.
