Dodsal wins $450m Abu Dhabi gas pipeline deal

26 August 2012

UAE contractor to construct two 300-kilometre pipelines to supply Taweelah industrial hub

The UAE’s Dodsal Group has won a $450m contract to build a major gas pipeline to supply industries in Taweelah, Abu Dhabi, according to a source close to the project.

The company emerged as the frontrunner for the deal in early June after submitting the lowest engineering, procurement and construction (EPC) commercial proposal for the Habshan-Maqta-Taweelah pipeline project.

Seven contractors in total submitted commercial bids for the contract, with Italian contractor Saipem submitting the second-lowest offer, according to sources close to the bidding process. Dodsal will carry out the EPC work over 34 months.

The project’s owner, Abu Dhabi Gas Industries (Gasco), is building two 300-kilometre pipelines to supply industries in Taweelah with additional gas.

The 52-inch-diametre pipelines will connect to distribution manifolds at the Habshan gas hub in the west of the country to Maqta, just outside Abu Dhabi. In addition, there will be a new 52-inch pipeline from Maqta to Taweelah and a 42-inch pipeline connecting two points in Taweelah.

The scope also includes the demolition of two existing smaller pipelines. The tender for the EPC contract was released in January.

Taweelah, located halfway between Abu Dhabi and Dubai, has become a centre for energy-intensive manufacturing industries, such as aluminium production. Emirates Aluminium (Emal) is currently undergoing a major expansion of its smelting capacity.

Gasco was formed in 1978 as a joint venture of state-owned Abu Dhabi National Oil Company (Adnoc), UK-Dutch Shell Group, France’s Total and Portugal’s Partex.

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