Abu Dhabi Gas Liquefaction Company (Adgas) has awarded two contracts for the development of a new flaring and emission reduction project on Das Island.

US-based Shaw Group won the front-end engineering design (feed) contract for the project, according to a source close to the process.

The project management consultancy services (PMC) contract for the feed phase of the project was awarded to UK-based Amec. The feed phase is expected to be carried out over 10 months to the first quarter of 2013 before Adgas tenders for the engineering procurement and construction (EPC) deal are released.

The flaring and emission reduction project will be designed to reduce carbon dioxide and sulphur dioxide emissions at Adgas’ liquefied natural gas (LNG) hub on Das Island by reducing the need for flaring.

Adgas’ Das Island plants, which produce LNG, liquefied petroleum gas (LPG), paraffinic naphtha and sulphur, currently flares an estimated 10-15 million cubic feet a day (cf/d) of waste gas.

Adgas is owned by Abu Dhabi National Oil Company (Adnoc), UK-based BP, France’s Total and Japanese group Mitsui. The company sells LNG to its sole long-term customer Tokyo Electric Power Company (Tepco) and through spot deals to Asia, Europe and the US. 

The company reported a 34 per cent increase in profits for 2011 and posted a net income of AED4bn ($1.1bn) in a year of rising LNG prices.