Adnoc Gas, the natural gas subsidiary of Abu Dhabi National Oil Company, on Monday, July 3, announced the award of contracts worth $1.34 billion (Dh4.9 billion) to Petrofac Emirates and the Consortium comprising National Petroleum Construction Co. and CAT International Ltd.

According to a news report published by Khaleej Times, the primary objective of this expansion is to extend Adnoc Gas' existing pipeline network from approximately 3,200km to over 3,500km to enable the company to transport more natural gas to customers in the Northern Emirates.

With the new strategic move, Adnoc Gas expects to foster additional growth for the company, supporting its ambition to expand its market share and enhance its customer base.

"Our strategic network expansion will bring the advantages of lower-cost, sustainable, and cleaner gas to more locations across the UAE by enhancing industrial access to natural gas, a cost-competitive and lower-carbon intensive fuel," CEO of Adnoc Gas, Ahmed Mohamed Alebri, stated, expressing his enthusiasm about the project.

"The expanded pipeline will drive further growth for Adnoc Gas and our shareholders as we deliver on our mandate to achieve gas self-sufficiency for the UAE," he added.

In line with Adnoc's In-Country Value (ICV) program, which aims to bolster the local value chain by promoting local manufacturing and supporting domestic industries, it is projected that over 70 percent of the contracts' value will be reinvested into the UAE economy.

The commitment demonstrates Adnoc's dedication to maximizing the socio-economic benefits of its operations, fostering sustainable development, and meeting the country's rising demand for natural gas.

The pipeline expansion project aligns with the UAE's broader energy strategy, which focuses on diversifying energy sources and ensuring a sustainable and resilient future for the nation.

Adnoc Gas is a subsidiary of Abu Dhabi National Oil Company (Adnoc), responsible for the production and distribution of natural gas in the United Arab Emirates (UAE). The company plays a vital role in meeting the energy needs of the UAE while prioritizing sustainability and driving economic growth.