The Habshan 7 project, a significant gas processing initiative by Adnoc Gas in the United Arab Emirates, is estimated to be worth between $3.5 billion and $4 billion. This project represents the second expansion phase of the broader Rich Gas Development (RGD) project, which is designed to upgrade multiple gas facilities in Abu Dhabi to handle incremental gas production. The RGD project is a key component of the parent company Adnoc's P5 programme, aimed at increasing offshore oil production capacity by 150,000 barrels per day to reach 5 million bpd by 2027.

Bidding Process and Contractors

Revised bids for the engineering, procurement, and construction (EPC) contract for the new gas train (Train 7) at the Habshan gas handling facility were recently submitted by up to seven contractors. Two new entrants, India's Larsen & Toubro and China's CPECC (China Petroleum Engineering and Construction Corporation), have joined the bidding process. They are competing alongside five other contractors: the UK's Petrofac; China's Sinopec, Wison Engineering, and Jereh; and a grouping of Egypt's Petrojet and Enppi. Adnoc Gas extended the bidding period to expand the list of participants, and the contract award is anticipated early next year, following the final investment decision (FID) for the RGD project's second phase.

Project Scope and Facilities

The Habshan 7 gas train will be situated adjacent to the existing Habshan 5 gas plant and will include comprehensive onshore surface facilities. Key components comprise a new onshore pipeline, a separation and condensate stabiliser unit, an acid gas removal unit, a deep gas recovery unit, a flare gas recovery package, a water treatment package, and associated infrastructure. This expansion is part of wider upgrades across several Adnoc Gas facilities—such as Das Island, the Bab and Habshan complex, Habshan 5, and the Asab and Bu Hasa gas handling facilities—to manage additional associated gas from the RGD programme.

Strategic Importance and Investment Decisions

Adnoc Gas aims to reach an FID for the second and third phases of the RGD project by the first half of next year. These phases are collectively valued at up to $8 billion, with Habshan 7 alone accounting for $3.5 billion to $4 billion. The second phase involves constructing an extra processing train, while the third phase may include an additional fractionation train to produce higher-value export-ready gases. An FID on these phases would increase Adnoc Gas's committed capital expenditure from $20 billion to between $27 billion and $28 billion through 2030, underscoring the project's role in enhancing gas production capacity.

Previous RGD Phase and Contract Awards

Earlier this year, Adnoc Gas took an FID for the first phase of the RGD project and awarded $5 billion in engineering, procurement, and construction management (EPCM) contracts. These were allocated in three tranches: a $2.8 billion contract to Wood for the Habshan facility, a $1.2 billion contract to a Petrofac-led consortium for the Das Island liquefaction facility, and a $1.1 billion contract to a Kent-led consortium for the Asab and Bu Hasa facilities. This initial phase focuses on optimizing existing gas assets and unlocking new gas streams through debottlenecking efforts.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Nishant Ugal. All rights to the original text and images remain with their respective rights holders.