A new liquefied natural gas (LNG) station is making significant strides in the UAE, as the nation seeks to secure alternative export routes that bypass the Strait of Hormuz. Although official details about the upcoming project remain undisclosed, ADNOC (Abu Dhabi National Oil Company) has shortlisted contractors in preparation for the inspection phase.
This inspection is expected to lead to the final awarding of contracts, with three contractors likely to submit their bids, as noted by the energy-focused platform, Energia.
The LNG station represents a crucial effort, among other similar projects initiated following the onset of Iranian hostilities, to maintain the steady exportation of oil and gas.
Updates on the New LNG Station in the UAE
ADNOC plans to conduct a field tour at the site designated for the new LNG station, as reported by the “Meed” platform. This visit aims to allow the shortlisted contractors to examine the facility’s location as part of the competition for preliminary engineering design work.
The contractors will focus on several critical aspects during their visit, including:
- The characteristics of the project site.
- Accessibility routes to the facility.
- Available infrastructure and utilities.
This step is crucial for collecting essential data about the UAE’s LNG station before moving forward with design preparations and cost evaluations. The contractors are vying for a contract covering two phases:
- Preliminary engineering design.
- Engineering, procurement, and construction.
Through this two-phase contracting approach, ADNOC will select contractors to handle the initial design phase, paving the way for the award of the construction contract to the winning bidder with the most competitive proposal.
Project Details and Plans to Bypass Hormuz
Available information indicates that the project will comprise a land-based LNG station with an expected nominal production capacity of 4 million tonnes per year, primarily intended for export. This development marks ADNOC’s second land-based LNG facility in the UAE, following the Ruwais project with an output capacity of 9.6 million tonnes annually.
While ADNOC has not precisely identified the intended site for the land station, a ‘Request for Interest’ document linked it to a coastal location. The project announcement was made on June 2, with interested parties invited to submit their proposals by June 5.
In early July, media reports highlighted that the project aims to establish a new export route away from the Strait of Hormuz. At that time, ADNOC received proposals from international contractors to develop the production and export facility overlooking the Gulf of Oman. Initial development plans included a pipeline to connect the Habshan field to the Fujairah facility, along with gas compression and export facilities.
Several contractors had submitted letters of interest, while ADNOC worked to finalise the station’s location, considering options in Fujairah and Sharjah. By late September, ADNOC selected three contractors to continue competing for the design of an LNG facility that would operate independent of the strait, according to reports from “Upstream Online”.
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