NPCC signs pipe deal with Al Gharbia for main gas line at Adnoc's Lower Zakum field

State oil company awarded a $548m contract in September as part of push to achieve gas self-sufficiency

The new pipeline will support the increased volume of associated gas produced by the Lower Zakum field as oil production capacity rises. Photo: Adnoc

Abu Dhabi’s National Petroleum Construction Company (NPCC) has signed a purchase order agreement with the emirate's Al Gharbia Pipe Company to purchase line pipes required to build a new main gas line at Adnoc’s Lower Zakum field.

Adnoc Offshore awarded NPCC the engineering, procurement and construction (EPC) contract for the project, which is expected to be completed in 2025.

The project includes the construction of a new subsea pipeline and the provisions to construct, install and test a new platform at the super complex, as well as a new gas receiving complex on Das Island.

“NPCC will spare no effort to support Adnoc achieve its gas self-sufficiency plans and cater to increasing global energy demand through delivering complex engineering, procurement and construction projects,” NPCC chief executive Ahmed Al Dhaheri said on Wednesday.

In September, Adnoc awarded a $548 million contract to build a new main gas line at its Lower Zakum field as part of its efforts to enable gas self-sufficiency for the UAE and cater to growing global energy demand.

The contract will raise the Lower Zakum field’s gas production capacity to 700 million standard cubic feet per day, from 430 million cfd.

The new pipeline will support the increased volume of associated gas produced by the Lower Zakum field as its oil production capacity rises to 450,000 barrels of oil per day by 2025.

In July, Adnoc announced its second discovery of natural gas this year in the first exploration well within Abu Dhabi’s Offshore Block 2 exploration concession operated by Eni.

The discovery — from a new, deeper reservoir — indicates one trillion to 1.5 trillion standard cf of raw gas, almost doubling the discovered field volume.

On Tuesday, Adnoc said it awarded three framework agreements worth $4 billion to Adnoc Drilling and US-based oilfield services providers Schlumberger and Halliburton.

Adnoc, which produces most of the UAE’s crude oil, aims to increase production to 5 million bpd by 2030.

NPCC is a unit of Abu Dhabi-listed National Marine Dredging Company. It has operations in the Arabian Gulf, South Asia and South-East Asia, and plans to expand into Africa and the Caspian region.

The company owns a fleet of 23 offshore vessels with modern equipment to support its shallow and deepwater operations.

As of March 2019, NPCC had executed more than 1,216 EPC projects.