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Bloomberg: The UAE will soon begin awarding $ 20 billion worth of gas project contracts

The UAE plans to accelerate $ 20 billion worth of natural gas projects, awarding contracts for some of them in the coming days, as part of their efforts to increase fuel exports.

Sources told Bloomberg that ADNOC is expected to award engineering and construction contracts for the Dalma gas field in the Persian Gulf waters as early as this week, with gas flow starting by 2025.

ADNOC is increasing gas production as consumers move away from crude oil and coal to reduce greenhouse gas emissions.

The Dalma field is expected to help achieve gas self-sufficiency for the UAE by 2030. ADNOC CEO Sultan Al Jaber said on Monday that the UAE will export some supplies in excess as liquefied natural gas. ADNOC declined to comment on the Delma contracts.

The Italian Eni, the Austrian OMV AG and the German Wintershall AG jointly hold a 40% stake in Dalma, while ADNOC owns the rest. In 2018, ADNOC said the field would pump 1.5 billion cubic feet per day of gas and 120,000 barrels of oil.

In turn, Eni’s chief executive, Claudio Descalzi, said he hopes ADNOC will make a final investment decision regarding the larger Hail and Ghasha fields next year.

Work in the fields was delayed in 2020 due to the coronavirus pandemic, and ADNOC also canceled a $ 1.5 billion contract to work in Dalma, which she said would be contracted out again.

Descalzi said that in 2018 the investment in all gas concessions could reach $ 20 billion.

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