ADNOC awards a contract worth 1.87 billion dirhams for a project at the Shah field sour gas plant

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The Abu Dhabi National Oil Company (ADNOC) announced today that it has awarded a contract worth 1.87 billion dirhams ($510 million) to the Italian company, Saipem, to carry out engineering, procurement and construction works for a project to increase the production capacity of the Shah Field Sour Gas Plant.

This investment supports ADNOC’s goal of achieving gas self-sufficiency for the UAE, and also reflects the company’s focus on increasing gas production in its integrated 2030 smart growth strategy.

ADNOC’s subsidiary, ADNOC Sour Gas, awarded the contract to the Italian company, Saipem, following a rigorous and competitive bidding process. More than 50% of the total contract value will be redirected to the local economy through ADNOC’s In-Country Value Enhancement Program, which confirms ADNOC’s keenness and commitment to redirecting value locally and keeping it within the country through the contracts it awards.

This project, which is expected to be completed in 2023, will increase the processing capacity of the Shah Gas Plant, located 210 km southwest of Abu Dhabi, by 13%, from 1.28 to 1.45 billion standard cubic feet per day. The new project represents a cumulative expansion of up to to 145% compared to the original production capacity of the plant that was commissioned in 2015.

Yasser Saeed Al Mazrouei, CEO of ADNOC’s Exploration, Development and Production Department, said that the expansion project of the Shah Sour Gas Factory reflects ADNOC’s efforts to increase gas production from existing fields to increase gas supplies and support the UAE’s goal of achieving gas self-sufficiency. We are confident that the in-country added value resulting from the award of the engineering, procurement and construction contract for the project will contribute to stimulating the growth of the private sector and the local economy, as we pass the stage of recovery from the COVID-19 pandemic and at the same time continue to meet the nation’s future energy needs.

The scope of the project includes the implementation of engineering, procurement and construction works, the pre-operational phase and the start-up of facilities to increase the production capacity of the plant, in addition to expanding the existing gas collection network and linking to the facilities of the new units.

For her part, Taiba Al Hashemi, CEO of ADNOC Sour Gas, said that the expansion of the Shah field plant for sour gas contributes to developing the plant’s operations, increasing its production capacity and improving the extraction of the final product, which increases our contribution and enhances our role as a safe and reliable provider of gas supplies to ADNOC and the UAE .

The project also contributes to transforming Shah into a center for operational expertise in the field of sour gas, while at the same time developing the skills and expertise of the next generation of Emiratis in this field. This contract was awarded to Saipem following a rigorous and competitive bidding process.

The scope of work for the Shah Field Sour Gas Plant Expansion Project includes all the associated sites and facilities needed to integrate the new facilities with the existing ones, including gas gathering facilities, master gas plant, product pipelines and a granular sulfur formation plant. The new plant modifications are designed to seamlessly integrate with existing facilities without any impact on the safety or security of the plant or production processes during construction, connection and operation.

ADNOC Sour Gas was established through a partnership between ADNOC and Occidental Petroleum, and the company adopts the concept of a single integrated site that includes activities and operational processes in the fields of exploration, development, production, gas processing, refining and petrochemicals. ADNOC Sour Gas, which operates the Shah field, is the only company in the world that processes more than 1 billion standard cubic feet of super sour gas per day from a single plant that also produces about 5% of the world’s total production of granulated sulfur.

All products from the Shah field plant, except for sulfur, are transferred to the ADNOC Group of companies for further processing or distribution for local consumption, while granulated sulfur is transported from the Shah plant to the Ruwais terminal for export.







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