LNG

Saipem, the Italian energy and LNG engineering company specializing in subsea work, has signed a letter of award with Abu Dhabi National Oil Company (Adnoc)  for a new contract related to the Hail and Ghasha natural gas development project in the United Arab Emirates.

Saipem said its share of the contract amounts to around $4.1 billion and has been awarded in consortium with the Abu Dhabi-based National Petroleum Construction Company (NPCC).

The project is aimed at developing the resources of the Hail and Ghasha natural gas fields, located offshore Abu Dhabi.

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

Saipem said the project scope of work encompassed the engineering, procurement and construction (EPC) of four drilling centres and one processing plant to be built on artificial islands, as well as various offshore structures and more than 300 kilometres (187 miles) of subsea pipelines.

Integrated

“The award is in line with Saipem’s unique capability to deliver integrated onshore and offshore projects, providing its clients with a single and reliable interface for complex full-field developments,” said the Milan-based company.

“Saipem will leverage on its state-of-the-art shallow water offshore vessels, its advanced welding technology for corrosion resistant materials, as well as its renowned engineering expertise,” Saipem added.

“This award reinforces Saipem’s long-standing relationship with ADNOC and further consolidates the company’s presence in Abu Dhabi, which includes an Engineering and Project Execution Centre, as well as a new Offshore Logistic base in Zayed Port,” Saipem explained. 

ADNOC’s partners in the Hail and Ghasha gas development with a concession term of 40 years include Italy’s Eni, Germany’s Wintershall Dea and Austria’s OMV.

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.

It also comes at a time when a second UAE LNG production project plant is being developed at Al Ruwais Industrial City. The Ruwais LNG project consists of two 4.8 million metric tonnes annum liquefaction Trains with a total nameplate capacity of 9.6 MTPA.

The existing liquefaction plant on Das Island in the Arabian Gulf currently has export capacity of 6 MTPA. 

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