LNG

March 3 (LNGJ) - Abu Dhabi National Oil Co (ADNOC) has set the final price for its over-subscribed initial public offering of 5 percent of its spun-off natural gas and LNG unit, ADNOC Gas. The main energy company of the United Arab Emirates set up the ADNOC Gas subsidiary on January 1 to group its world-scale gas processing operations and gas marketing company.

   The new subsidiary at the centre of the IPO combines the operations, maintenance and marketing of the ADNOC Gas Processing and ADNOC LNG units into one consolidated business. The ADNOC Gas share price was set on March 3 at 2.37 dirhams ($0.645) per share, near the top end of the price range that was set at 2.25 to 2.43 dirhams a share. Proceeds from the IPO came to around $2.5 billion. ADNOC Gas shares are expected to begin trading on March 13.

Technip Energies, the leading LNG and energy project company, said a consortium which it heads has been awarded a pre-construction services agreement (PCSA) related to the onshore facilities for the Hail and Ghasha Gas Development Project in Abu Dhabi in the United Arab Emirates.

Technip’s partners in the contract are South Korea’s Samsung Engineering and Italian firm Tecnimont SpA.

Hail & Ghasha is a conventional gas development located in shallow water in the emirate of Abu Dhabi and is operated by Abu Dhabi National Oil Company (ADNOC).

The fields lie in the Ghasha Concession block in water depth of around 328 feet and are expected to start commercial production in 2025.

“The PCSA phase follows the successful completion of an updated front-end engineering and design (FEED) for the entire development, executed by Technip Energies,” said  Technip.

Next phase

“This next phase covers early project activities for onshore facilities, such as initial detailed engineering and procurement services of critical long lead items,” explained Technip.

The PCSA scope of work also includes the preparation of “an open book cost estimate” for the project delivery of the onshore scope, which will be considered as part of the final investment decision-making process.

“We are honoured to be trusted by ADNOC to continue from the successful FEED execution to the initial activities for the onshore facilities for this important gas growth project and to prepare an open-book cost estimate for project delivery,” said Arnaud Pieton, Chief Executive of Technip Energies.

“This reinforces Technip Energies' long-standing relationship and trust developed over the last four decades with ADNOC, supported by our long-term presence in Abu Dhabi,” added Pieton.

“Together with our joint venture partners, Samsung Engineering and Tecnimont, we will utilize our global experience on mega project execution and open book estimate conversions to transparently and diligently work with ADNOC and their international concession partners to continually optimize the project and successfully meet their requirements,” declared the CEO.

The multi-billion-dollar Hail and Ghasha project is also seen as playing a vital role in meeting the UAE’s gas self-sufficiency objectives.

ADNOC’s partners in the project with a concession term of 40 years include Italy’s Eni, Germany’s Wintershall Dea and Austria’s OMV

Abu Dhabi National Oil Company (ADNOC) is proceeding with its plans to offer a minority stake in new subsidiary ADNOC Gas, which consolidates the emirate’s gas processing and LNG operations, through an initial public offering on the Abu Dhabi Securities Exchange in 2023.