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Adgas Awards $1 Billion Contract to Hyundai

Fahim Kazim, General Manager of Adgas, which is a subsidiary of Abu Dhabi National Oil Company, or Adnoc, said the project is planned to be completed in August 2013 and will involve multiple offshore and onshore sites.

“The project we signed today on behalf of Adnoc is a major milestone which reflects Adgas new vision and commitment to participate in the country’s national energy strategy, within an integrated project that also involves ADMA-OPCO and GASCO,” Kazim said after the signing ceremony on Monday.

The agreement was signed at Adgas Abu Dhabi Headquarters on Monday by Fahim Kazim, Adgas General Manager, and Chang June Kang, Hyundai’s Senior EVP, and COO of Offshore & Engineering Division. Chung Yong-chill, the Korean Ambassador to the UAE and Abdulla Nasser Al Suweidi, Adnoc Deputy Chief Eexecutive Officer were also present on the occasion.

“It is a part of the Integrated Gas Development (IGD) Project, which is an ambitious and strategic initiative of Adnoc to process and supply the gas to meet the growing needs and development plans of Abu Dhabi. The 49 month project is also one of the world’s largest undertakings, involving multiple sites, both offshore and onshore,” Kazim said.

Limited land area on Das Island had been a challenge facing the project. “Due to limited area on Das Island, we had to reclaim an additional 108,000 square metres of land for the project facilities and to build a 100 metres long jetty for off loading of heavy 1500 tonnes modules,” Kazim said.

Sitting on fourth largest gas reserves in the world, Abu Dhabi exports most of its natural gas in compressed form to the Far-east nations. Around 85 per cent of the LNG produced at Das Island is exported to Japan’s Tokyo electric Power Co. But now Abu Dhabi plans to benefit from its natural gas resources starting the second quarter 2010, when 200 million cubic feet per day of associated gases would be supplied to the emirate for generating electricity and for use as fuel in the heavy industry.

The Offshore Associated Gas project, or OAG, and Integrated Gas Development, or IGD, are the two major gas development projects that have been launched by Abu Dhabi Gas Industries Ltd, or Gasco, Abu Dhabi Gas Liquefaction Company Ltd, or Adgas, and the Abu Dhabi Marine Operating Company, or ADMA-OPCO. The projects are in different phases of construction and development, involving six packages, said Kazim. Speaking to reporters on the sidelines of the contract signing ceremony he said: “The gas would be on disposal of Abu Dhabi between the first and second quarter of next year.” Natural gas would replace furnace oil and diesel used as fuel for generating electricity, running fertilizer and cement plants as well as steel and aluminium industries in Abu Dhabi.

Meanwhile, the planning work has started on one of the important components of the IGD project on the Das Island, which would also provide natural gas to Abu Dhabi.

The $10 billion project to be completed in August 2013, will add one billion cubic feet of natural gas gathered from offshore Umme Shaif fields operated by ADMA-OPCO.

“Adgas had issued the letter of intent in July this year for the engineering, procurement and construction or EPC contract to Korea Hyundai Heavy Industries Co. Ltd, or HHI, to develop the IGD plant on Das Island valuing $1 billion,” he said.

The project will involve processing an additional one billion cubic feet per day of high pressure gas and transporting it from Adma-Opco’s offshore Umm Shaif field via a new pipeline to Adgas’ new IGD facilities at Das Island. 
— haseebhaider@khaleejtimes.com