Adnoc Gas awards design contract for gas processing facilities at BGC

Adnoc Gas announced on Wednesday that Worley Engineering has been awarded the Front-End Engineering and Design (FEED) contract for new gas processing facilities at Bab Gas Cap (BGC).

The new facilities would boost Adnoc Gas’ current processing capacity by 20 per cent or over 1.8 billion standard cubic feet per day (scfd) with a Final Investment Decision (FID) expected in 2026.

The project’s processing facilities will be designed to optimise production of natural gas liquids (NGL), condensate, sales gas, and sulfur. The BGC project supports Adnoc’s broader gas growth strategy and is expected to make an important contribution to UAE gas self-sufficiency.

Dr. Ahmed Alebri, CEO, Adnoc Gas, said, “Today is an important step forward for this project, which has the potential to substantially increase our gas processing capacity, unlock additional revenue and strengthen Adnoc Gas’ position as a global gas supplier. This ambitious project will deploy state-of-the-art gas processing technologies and make an important contribution to the UAE’s gas self-sufficiency efforts. We are pleased to see the BGC project reach this stage.”

The projects design scope includes the development of gas processing and conditioning units, acid gas recovery units, dehydration units, sulfur recovery units, NGL recovery units, and CO2 capture facilities.

It also includes the construction of injection facilities and associated utilities, along with the design and routing of new product pipelines for the efficient transfer of liquid sulfur to the Habshan Sulfur Granulation Plant.

The facilities will receive hydrocarbons from an innovative development of the Bab field. Following advanced field development studies and leveraging state-of-the-art technologies, Adnoc has enabled the simultaneous development of oil and gas within the field whilst unlocking a potential production of 1.5 BCFD of gas and 80 MBD of condensate.

Adnoc Gas announced it expects to acquire Adnoc’s 60 per cent stake in the Ruwais Liquified Natural Gas (LNG) plant in the second half of 2028 at cost.

Adnoc Gas expects Adnoc to transfer its 60 per cent share of the Ruwais LNG Project to the company at cost - estimated to be around $5 billion - in the second half of 2028.

On behalf of the Adnoc Group, Adnoc Gas is managing the construction and design of Ruwais LNG, as well as leading the marketing of LNG volumes. Over 7 mtpa of the project’s total production capacity of 9.6 mtpa has already been committed to international customers.

Dr. Ahmed Mohamed Alebri, CEO of Adnoc Gas, said, “It has always been our intention to acquire Adnoc’s 60 per cent stake in Ruwais LNG.

This investment is a central component of our ambitious international growth plans and will strengthen AdnocGas’ position as a powerhouse in the global LNG market.

Over the next five years we plan to invest $15 billion in Capex in projects which will enable us to capture opportunities from the forecast increase in domestic and global demand for the lower carbon gases we produce.”

The Ruwais LNG plant will more than double Adnoc Gas’ current gross 6 mtpa LNG capacity operated from Das Island to reach more than 15 mtpa; it will have two electrically powered liquefaction trains, each with a processing capacity of 4.8 mtpa, a first in the Middle East and North Africa (MENA) region. When completed, Ruwais LNG will be one of the lowest-carbon intensity LNG plants in the world.

Meanwhile in August 2024 Adnoc Gas, the world-class integrated gas processing company, announced the award of a $3.6 billion (Dhs13.1 billion) contract to the joint venture between National Petroleum Construction Company (NPCC) and Tecnicas Reunidas to expand its gas processing infrastructure in the UAE.

The scope of the contract includes the commissioning of new gas processing facilities which will enable an optimised supply to the Ruwais Industrial Complex.

The strategic Maximising Ethane Recovery and Monetisation (MERAM) project aims to achieve dual objectives; firstly, to increase ethane extraction, by a range of 35 - 40 per cent, from Adnoc Gas’s existing onshore facilities in the Habshan complex through the construction of new gas processing facilities; and secondly, to unlock further value from existing feedstock and deliver it to Ruwais via a dedicated 120 kilometer natural gas liquids (NGL) pipeline.

Over 70 per cent of the award value will flow back into the UAE’s economy under Adnoc’s successful In-Country Value (ICV) programme, supporting local economic growth and diversification.

Ahmed Mohamed Alebri, Chief Executive Officer of Adnoc Gas, said, “This capital project represents Adnoc Gas’ latest investment in its gas processing infrastructure and underscores our commitment to responsibly meeting our customers’ current and future energy demand for natural gas and its feedstock.