CNPC unit and Petrofac among winners of $2.1B infrastructure contracts for ADNOC’s Ruwais LNG

ADNOC Gas, a subsidiary of Abu Dhabi National Oil Company (ADNOC), has awarded three contracts related to the construction of infrastructure at its future liquefied natural gas (LNG) complex in Al Ruwais Industrial City, Abu Dhabi.

The contracts with a combined value of $2.1 billion encompass works on an LNG pre-conditioning plant (LPP), compression facilities, and transmission pipelines–described as key infrastructure by the UAE player–to supply feedstock to its 9.6 million tonnes per annum (mtpa) Ruwais LNG project under construction.

The transmission pipelines will connect the Ruwais LNG facility with the Habshan Complex, where the LPP and compression facilities will be located. With its five plants, 14 processing trains, and 6.1 billion standard cubic feet per day (bscfd) capacity, Habshan is said to be one of the world’s largest integrated gas processing complexes. 

“These contract awards reaffirm ADNOC Gas’ commitment to delivering sustainable growth and maximizing shareholder value. We are investing in world-class infrastructure and innovative technologies as we expand our capacity in LNG liquefaction and strengthen our position as a global player,” noted Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas.

The largest contract, valued at $1.24 billion for the LPP, was awarded to a consortium comprising Engineering for the Petroleum and Process Industries (ENPPI) and Petrojet. Next, China Petroleum Pipeline Engineering Company, a subsidiary of the China National Petroleum Corporation (CNPC), won a $514 million contract for transmission pipelines.

Petrofac Emirates is set to develop the new compression facilities under the third contract, valued at $335 million. According to the firm, this is also its third engineering, procurement, and construction (EPC) contract for the Habshan Complex. The new assignment encompasses the two gas compressor trains, associated utilities, and power systems. 

Elie Lahoud, Chief Operating Officer of Petrofac’s Engineering & Construction division, remarked: “The expansion of our role at the Habshan Complex is testament to the delivery expertise deployed by our team on this and various other projects throughout our long history supporting ADNOC in the UAE.”

The contract awards form part of the $15 billion capital expenditure (Capex) plan through 2029, outlined in ADNOC Gas’ recent strategy update. Since the energy major expects gas demand until 2030 to be 6%, higher than the previously expected 2%, it intends to increase Capex from $13 to $15 billion in 2025–2029. This is anticipated to boost the firm’s earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2029 by 40%.

ADNOC Gas says its major focus until 2029 will be on the development and delivery of three large projects under construction post-final investment decisions (FID), one of which is the Ruwais LNG.

The updated growth strategy also advances the design and concept study of large-scale pre-FID projects to accommodate a “significant” increase in the company’s gas processing capabilities as ADNOC expands its upstream production capacity, as well as the Bab Gas Cap project, which are expected to be completed after 2029.

Additionally, ADNOC Gas says the Capex for the LPP, compression facilities, and transmission pipelines does not form part of the cost it previously outlined for the intended acquisition of its parent company’s majority stake in the Ruwais LNG project when the plant enters operation in 2028.

Once operational, the Ruwais LNG plant is expected to more than double ADNOC Gas’ LNG production capacity to more than 15 mtpa. The export facility will feature two liquefaction trains, each with a processing capacity of 4.8 mtpa, powered by what the energy says is clean grid electricity, which is set to be a first in the Middle East and North Africa (MENA) region.

In December 2024, the UAE player signed a sales and purchase agreement (SPA) with Germany’s EnBW for supplying 0.6 million mtpa of LNG over 15 years, which formalized the heads of agreement (HoA) the duo inked in May. 

The SPA with EnBW is ADNOC’s second with a German company and third overall for Ruwais LNG. It follows an agreement signed in November with Germany’s SEFE Marketing and Trading and a deal with Malaysia’s Petronas inked in early December.