ADNOC Gas hands over $2.4 billion pipeline expansion project ADNOC, parent company, in 2024. The project aims to encourage sustainable business practices so that the side effects of climate change can be mitigated. This is pipeline expansion program which will increase the size of pipeline in the Saudi Arab Emirates from 3200 Km to now being 3500 Km. for the engineering, procurement and construction services will be offered by the Abu Dhabi National Oil company (ADNOC). It is an expansion plan means that there will be an extension in the pipeline coverage area.
The project is being transferred to the ADNOC’s parent company and it is operated by the NMDC. The project is transferred to its parent company and is now also called ESTIDAMA. It means that the company will promote sustainability and innovation through ingenuous practices. There will be disbursement of around $500 million initially from the project worth $2.3 billion.
What does this Pipeline Expansion Mean to UAE?
The United Arab Emirates is consisted of 7 states within the country. While Abu Dhabi and Dubai are two well established centers of tourism and are quite affluent, the remaining states such as Ras Al Khaimah, Sharjah, Fujairah, Umm Al Quwain and Ajman also known as Northern Emirates have scattered transportation and development in comparison with two other.
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Therefore this expansion in pipeline which will be used in transportation of higher volume of natural gas to the customers in Northern Emirates holds significance. Though the ADNOC Gas will be managing ESTIDAMA, it is now undertaken by the ADNOC. The complete construction and operations will around $2.4 billion. And the parent company will be covering up the capital expenditure for this infrastructure project.
“The pipeline expansion will support the UAE’s gas pipeline network which will bring lower cost and sustainable natural gas to more remote locations across the country” said Dr. Ahmed Alebri, CEO of ADNOC Gas.
How will the Expansion Project Benefit the Country?
The ESTIDAMA project will enable the higher volumes of natural gas transportation accessible as it is expanding its network from 3200Km to 3500km through the pipeline expansion project. “The project will be a lead role in meeting the growing demand for gas across the country and enabling the UAE’s goals of gas self sufficiency” said ADNOC Gas’s CEO.
In order to meet the company’s goal of doubling the production of Liquefied Natural Gas (LNG) by 2028, the project will play a crucial role. ADNOC Gas stated in a press briefing that it intends to invest more than $13 billion by 2029 to pursue domestic and international growth opportunities.
Through strategic acquisition, the company aims to expand footprint in Europe, East Asia, China, India and South Asia. Its new project “Ruwais LNG Plant” will be catering to fulfill the vision of the company. The Ruwais project is potentially doubling the ADNOC’s UAE production capacity. And for that, there is an under construction development for Al Ruwais Industrial City in Abu Dhabi.
Where two trains will be set up each carrying 4.8 million tonnes per annum LNG liquefaction with a total of 9.6 million annually. It is expected to begin in the second half of 2028.
What does Future Hold for ADNOC Pipeline Expansion Project?
Sustainable practices will sustain in future and the project is named after Arabic work ESTIDAMA which could be translated in English as sustainable. As the pipeline project seeks to involve in sustainable practices, it will promote revolutionary ideas in future.
95 per cent of the LNG gas reserves in the UAE are under the control of the ADNOC which for that reason was awarded contracts worth $4.9 billion to enlarge the processing capacity. It is largely benefited by the potential increased demand of the LNG in future which is about to increase by 50 per cent by 2040 as the industrial and economic growth will be driven by coal to gas switching.
China, South Asian and South East Asian countries are expected to witness a surge LNG demand in upcoming years as industries will be driven more by LNG than by coal.
What is UAE’s New Sustainability Initiative?
As climate change is inducing global warming and growing consumption rates of fossil fuels will be making is difficult to get the desired outcomes even after cumulative efforts made by super powers of the world. Global temperature is going to increase by 1.4 degrees Celsius by end of 21st century. Rise is global temperature means that many of the archipelago and peninsulas will be submerged under water due to rise in sea level following melting of glaciers.
Green house gases emitted by the petrochemicals industry makes the scene worst for future and the rapid expansion plans will pose a threat a biodiversity as well. For all that reasons, the Abu Dhabi Urban Planning Council establishes a clear vision for anchoring sustainability.
Rapid and unmindful expansion will not take place as the council has a clear vision for sustainability called ESTIDAMA in Arabic. The development projects will be adapted to improve the life of residents following four equal pillars of sustainability; environmental, economic, social and cultural.
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