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Saipem wins $510m Abu Dhabi gas plant expansion contract

Abu Dhabi National Oil Company (Adnoc) has awarded a $510-million engineering, procurement and construction (EPC) contract to Italy’s Saipem for expanding the capacity at its Shah sour gas plant by 13 per cent to 1.45 billion cu ft per day over the next two years.

The investment supports Adnoc’s objective of enabling gas self-sufficiency for the UAE and underpins growth in gas production, in line with Adnoc’s 2030 strategy.

Saipem was awarded the EPC contract for the Optimum Shah Gas Expansion (OSGE) project by Adnoc Sour Gas following a competitive tender process.

Adnoc Sour Gas, a joint venture between Adnoc and Occidental, adopts an integrated single-field approach that covers upstream, midstream, and downstream activities.

It operates the Shah field and is the only company in the world that processes more than 1 billion standard cubic feet per day (SCFD) of ultra-sour gas from a single gas plant which also produces approximately 5% of the world’s granulated sulfur.

Adnoc said more than 50 per cent of the award value will flow back into the UAE’s economy under its In-Country Value (ICV) programme, thus reinforcing the group’s commitment in ensuring that more economic value remains in the country from the contracts it awards.

Once the OSGE project gets completed in 2023, it will increase the processing capacity of the Shah Gas Plant by 13 percent, from 1.28 to 1.45 billion SCFD.

Shah, located 210 km southwest of Abu Dhabi city, came on stream in 2015 and the OSGE project represents a cumulative expansion to 145 per cent of the plant’s original capacity.

Adnoc Upstream Executive Director Yaser Saeed Almazrouei said; "The Shah Gas Expansion Project is an excellent example of how Adnoc is growing its gas production at existing fields to deliver a more sustainable gas supply and support the UAE’s gas self-sufficiency objective."

The scope of work includes EPC, pre-commissioning, commissioning, and startup of facilities to increase plant production capacity as well as the extension of the existing gas gathering network and new pad facilities, he added.

Adnoc Sour Gas CEO Tayba Al Hashemi said: "Shah’s expansion will optimise the plant as well as improve both capacity and higher-end product recoveries, further growing our contribution as a safe and reliable supplier of gas to Adnoc and the UAE."

"It enhances Shah’s position as a hub of sour operations expertise, developing the skills and experience of the next generation of Emirati professionals. Saipem was awarded this contract following a rigorous, competitive tender process," stated Al Hashemi.

"The scope of the OSGE project includes all associated off-sites and utilities necessary to integrate the new facilities with existing installations, including gas gathering facilities, main gas plant, product pipelines, and the sulfur granulation plant," he added.

The plant modifications have been designed for seamless integration with existing facilities with no impact on the safety or integrity of the plant while minimizing impacts on production during construction, interfacing and commissioning.
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