NPCC and Tecnimont awarded gas packages

11 February 2015

Contracts awarded on Abu Dhabi Integrated Gas Development Expansion total $1.57bn

  • Packages one, two and three now awarded
  • Tecnimont and Archirodon awarded $491m Das Island facilities
  • NPCC wins $410m offshore gas pipeline deal

National Petroleum Construction Company (NPCC), Tecnimont and Archirodon have been awarded contracts on its Integrated Gas Development Expansion (IGD-E) worth a combined $901m.

The engineering, procurement and construction (EPC) awards follow the $700m contract announced by Spain’s Tecnicas Reunidas (TR) on the Package 3 onshore pipeline.

State-owned Abu Dhabi National Oil Company (Adnoc) and its subsidiaries are carrying out the IGD-E to produce 400 million cubic feet a day (cf/d) of additional gas from its offshore fields in order to increase onshore gas sales.

The three packages awarded are expected to be carried out over the coming 40 months.

Package One was awarded to a consortium of Italy’s Tecnimont and UAE-based Archirodon for $491m.

The package was awarded by Abu Dhabi Gas Liquefaction Company (Adgas) and covers the construction of new facilities on Das Island to increase offshore processing capacity. These facilities are: new fourth dehydration train, new common dry gas compression after cooler; and land reclamation.

The initial phase of the contract’s execution will be carried out at Tecnimont’s headquarters in Milan and will later move to Das Island for construction activities.

Abu Dhabi-based NPCC was awarded the $410m Package Two from Abu Dhabi Gas Industries (Gasco). The package consists of the 117-kilometre offshore segment of the 42-inch IGD-E pipeline.

The selected offshore route of the new IGD-E pipeline runs parallel to the existing offshore associated gas (OAG) pipeline route from Das Island to the shore crossing tie-in at Ras al-Qila.

TR will construct the 114km onshore segment of the pipeline between Ras al-Qila to the Habshan 5 gas processing plant. New units will also be required at Habshan 5 to receive gas from the new pipeline.

The front-end engineering and design (feed) for the IGD expansion was carried out by US-based Fluor.

The original $11bn IGD was completed in 2014. The operation has the capacity to process 1 million cf/d of gas from the offshore Umm Shaif field.

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