Abu Dhabi Gas Industries (Gasco) plans to tender the construction contract for a major $150m-plus new gas pipeline project by the end of 2010.

The engineering, procurement and construction (EPC) contract will cover two stretches of pipelines, one running between Gasco’s gas processing facilities at Habshan in central Abu Dhabi to the Port of Ruwais in the Western Region and the other from Ruwais to Shuweihat, also in the Western Region.

The 62-inch pipelines will be used to carry methane and ethane-rich ‘lean’ gas. The Habshan to Ruwais section will cover around 130 kilometres while the Ruwais to Shuweihat portion will be around 60 kilometres, according to sources with knowledge of the project.

Italy’s Saipem is working on front end engineering and design (Feed) studies for the two projects, which are scheduled for completion in the fourth quarter of the year. The engineering firm will also prepare bid documents for the project.

Gasco plans to invite contractors to bid on the combined deal to build the pipelines before the end of the year, and to award the EPC contract by the end of the first quarter of 2010. Contractors expect to receive solicitations of interest in the project in after Ramadan, most likely in mid-September.