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Gasco awards contracts worth Dh34bn for integrated gas systems project

Abu Dhabi Gas Industries Ltd. (GASCO) has confirmed the award of the contracts for Engineering, Procurement, Construction and Commissioning (EPC) works for the Integrated Gas Development (IGD) Project on Lump Sum Turnkey Basis, covering the following Packages:
1. Habshan 5 Process Plant 2. Habshan 5 Utilities’&’Offsites ( U’&’O) 3. Ruwais 4th NGL Train 4. Ruwais Storage Tanks The Contract were awarded as follows: 1. Habshan 5 Process Plant: To a Joint Venture of JGC of Japan and Tecnimont of Italy for a total Agreement Price of about US$ four billion and seven hundred million (Dirhams seventeen billion and three hundred million.).
2. Habshan 5 U’&’O: To Hyundai Engineering ‘&’ Construction of South Korea for a total Agreement Price of about US$ one billion and seven hundred million (Dirhams six billion and two hundred million.)
3. Ruwais 4th Natural Gas Liquids (NGL) Train: To a Joint Venture of Petrofac of UAE and GS Engineering of South Korea for a total Agreement Price of about US$ two billion and one hundred million (Dirhams eight billion).
4. Ruwais Storage Tanks: To CBI of USA for a total Agreement Price of US$ Five hundred and thirty three million (Dirhams one billion and nine hundred fifty million) The Letters of Award were issued to the above mentioned Companies on 15th July 2009.
The initial Phase of the Projects execution will commence from the respective Contractors’ Home Offices and will later on move to the Sites at Habshan and Ruwais for construction activities The Projects are scheduled for completion by 3rd Quarter 2013. All the 4 Packages are Mega Projects in their own complexity and magnitude.
The IGD Project will be built at a new location in Habshan titled Habshan 5. There will be 4 Gas Processing Trains with total processing capacity of 2,000 MMSCFD. Of this, 1,000 Million Standard Cubic Feet Per day (MMSCFD) of Gas will be transported from Offshore field Umm Shaif via Das Island to enable ADMA-OPCO to meet their planned increase in Oil Production. The remaining 1,000 MMSCFD of Gas will comprise of a mix of Associated Gas as a result of increase in Oil Production by ADCO from 1.4 to 1.8 MM Barrels/day and Non-associated gases of high sourness from Habshan gas fields. The Habshan 5 complex will also build 4 new Sulphur Recovery Units with recovery efficiency upto 99.9%. It will reduce emission of toxic gases considerably meeting the environment standards of ADNOC.
After commissioning of these facilities the new complex in Habshan 5 will produce 900 MMSCFD of Sales Gas, 12,000 Tons/Day of NGL and 5,000 Tons/Day of Liquid Sulphur.
While the products (Propane, Butane, Paraffinic Naphtha and Sulphur) would be exported, ethane shall be transported to the nearby Petrochemical Complex as feedstock.
GASCO will direct its Contractors to maximize in these projects the local contents in terms of materials, equipment and services.
These Projects will deploy large number of workforce of labour, technicians and supervisors to the tune of about 30,000 at the peak of construction activities. Of these, about 20,000 persons will be in Habshan 5 while about 10,000 will be in Ruwais.
The IGD Project, in addition to providing Sales Gas to the consumers in the Emirate, will also provide a permanent link between offshore and on shore facilities of ADNOC Group of companies to provide operational flexibility for Oil and Gas Production.
The Front End Engineering Design (FEED) for the IGD Project was completed last year and during execution of FEED high significance was been given to HSE aspects in order to eliminate and adverse impact on the environment and the surrounding community in line with ADNOC HSE Code of Practices.
These Projects will also provide excellent opportunities to UAE Nationals for training and learning new technologies through exposure and interaction with specialists of these Engineering Companies. This will enable them to enhance their competencies and expertise in the area of Project Management and also to take on the responsibilities in Operation and Maintenance. - Emirates News Agency, WAM

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ADGAS awards US$1 billion contract of IGD

Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS) has awarded the contract of the Integrated Gas Development (IGD) project to Hyundai Heavy Industries Co. The US$1 billion IGD project will produce 1 Billion Standard Cubic Feet Per day (BMSCFD) from the Umm Shaif offshore gas fields of ADMA-OPCO. The gas will then be pumped through a sea pipeline to GASCO’s Habshan plant. The project, which includes three units to process high pressure gas, aims at enabling ADMA to raise its crude oil output and supplying it with largest quantities of gas to be used in other industries. The project is scheduled for completion by 3rd quarter of 2013. - Emirates

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IPIC announces opening of the first publicly accessible hydrogen filling station in Baden, Germany

Stuttgart, Germany - The Abu Dhabi-based International Petroleum Investment Company (IPIC) said yesterday that Europe’s leading oil and gas group OMV, in which it owns a 19.6 share, has opened the first publicly accessible hydrogen filling station in Baden, Germany in cooperation with Linde AG and Daimler AG.
The new filling station on the site of the OMV service station at Stuttgart Airport, a major transport hub, marks successful cooperation between the participating companies and is subsidized by the State of Baden-Württemberg.
The project is cantered on the use of hydrogen as an environment-friendly energy medium. Hydrogen filling stations represent an important step toward reducing dependence on fossil fuels in the long term and coming a step closer to emission-free sustainable mobility.
The innovative hydrogen filling station will serve fuel cell vehicles of the latest generation, such as the Mercedes-Benz B-Class F-CELL, with 700-bar high-pressure technology. Small-series production of this vehicle is to commence later this year in Germany.
The proximity of the OMV service station to Stuttgart Airport - a major transport hub - and to Daimler AG’s research and development centres, together with the cooperative contact between the two companies, is providing the basis for the establishment of Baden-Württemberg’s first publicly accessible hydrogen filling station. Within the framework of a public-private partnership, the hydrogen station will provide an important impulse for a future supply network for this state, thus supporting the operation of locally emission-free electric vehicles on the basis of fuel cell technology. - Emirates News Agency, WAM

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The UAE-based oil and gas exporter Crescent Petroleum said it is seeking international arbitration concerning a gas supply contract with Iran, which has been delayed for more than three years, the company said in a statement.
The 25-year contract, which is Iran’s first contract for gas export from the south of Iran, was signed between Crescent and NIOC in 2001 after several years of negotiations. NIOC contractually committed to commence gas deliveries in December 2005. The deal provides for disputes to be determined by international arbitration under the rules of the International Chamber of Commerce.
“NIOC contractors have announced they expect to achieve technical readiness later this summer, but we have still not had an official notification of a date of readiness to deliver gas from NIOC despite numerous letters to the Iranian Petroleum Minister as NIOC Chairman requesting confirmation of a date,” the statement said.

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Statement on Crescent Petroleum seeking legal ruling on the gas supply contract with National Iranian Oil Company (NIOC) through International Arbitration

Abu Dhabi Securities Exchange
Abu Dhabi

Dana Gas Chief Executive says:
We have been notified by our partner Crescent Petroleum that they are seeking legal ruling on the gas supply contract with NIOC through international arbitration, as per the 25-year agreement between them. This follows more than 42 months of delays in gas delivery by NIOC, and demands for performance from customers in the UAE. Dana Gas, which has no contractual relationship with NIOC and whose role will be in the UAE in processing, transportation, and a minority stake in the marketing operation for the imported gas, hopes for successful final resolution of all matters so that gas deliveries can finally commence on this important project, which will bring great benefits to the region’s economy.

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Addax Petroleum Corp (AXC.TO) said on Friday it had declared force majeure on its Nigerian Antan crude oil exports from Thursday due to production problems.

Addax said they were investigating the situation but the amount of crude oil output affected was not yet known. Antan was due to export 70,000 barrels per day of crude oil in August.

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Oando’s first-quarter net profit climbed 30 percent year-on-year to 1.81 billion naira, the firm’s interim financial report published by the Nigerian Stock Exchange (NSE) showed on Friday.

Gross earnings in the three months to March 31 at Oando, one of Nigeria’s top fuel retailers, which is also listed on the Johannesburg bourse, rose nearly 12 percent to 77.53 billion naira from 69.36 billion naira in the first-quarter of 2008, according to the report.

Tags: Abu Dhabi, ADGAS, ADMA, ADNOC Group, Emirates, offshore gas fields