Abu Dhabi National Oil Company (ADNOC) has awarded a $510m contract to Saipem to upgrade the Shah Gas plant in the UAE.
The engineering, procurement and construction (EPC) contract for the Optimum Shah Gas Expansion (OSGE) & Gas Gathering project has been awarded by ADNOC Sour Gas, a joint venture between ADNOC and US energy major Occidental.
The contract involves engineering, the supply of materials, and the construction and commissioning of additional components at the Shah Gas plant.
It also includes an extension to the existing gas gathering network and new pad
facilities.
ASG CEO Tayba Al Hashemi said: “Shah’s expansion will optimise the plant, as well as improve both capacity and higher-end product recoveries, further growing our contribution as a safe and reliable supplier of gas to ADNOC and the UAE.
“It enhances Shah’s position as a hub of sour operations expertise, developing the skills and experience of the next generation of Emirati professionals. Saipem was awarded this contract following a rigorous, competitive tender process.”
Planned to be completed in 2023, the OSGE project will increase the gas plant’s processing capacity by 13% to 1.45 billion standard cubic feet per day (scfd) from1.28 billion scfd.
In total, the OSGE project aims for a 145% expansion of the plant’s original capacity.
Said to be the world’s largest of its kind, the Shah gas plant is located 120km southwest of Abu Dhabi. It entered the operational phase in 2015.
Saipem said in a statement: “Due to a higher sulphur content, the plant requires specific technologies to ensure safety and respect for the environment. The technologies utilised will ensure, moreover, continuity of production even during maintenance work, and minimise downtime.”
ASGI, which operates the Shah field, is claimed to be the world’s only firm with the capacity to process more than one billion Scfd of ultra-sour gas from a single gas plant.
The facility also accounts for approximately 5% of the world’s granulated sulfur.
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