Abu Dhabi’s energy giant, ADNOC, has terminated two crucial contracts for onshore and offshore work on its Hail and Ghasha sour gas development project, which is expected to have a significant impact on the construction industry in the Middle East.
The project, which has already faced delays, is among the largest oil and gas ventures in the UAE and plays a vital role in Abu Dhabi’s plans to boost its gas production capacity by the end of the decade.
The Hail and Ghasha project is anticipated to add up to 1.5 billion cubic feet per day of gas at its peak, making it an essential source of feedstock for Abu Dhabi’s gas export strategy, in addition to its goal of becoming a significant hydrogen producer.
People familiar with the matter said that ADNOC has informed key stakeholders that the project’s pre-construction services agreements (PCSAs), recently awarded to two international consortia, now stand terminated.
As per ADNOC officials, Ghasha mega-project is one of the world’s largest offshore sour gas development.
Once completed, the multi-billion-dollar project is likely to play a vital role in meeting the UAE’s gas self-sufficiency objective, in line with ADNOC’s integrated gas strategy. Approved by the Supreme Petroleum Council (SPC), the integrated gas strategy aims to unlock and maximise value from Abu Dhabi’s substantial natural gas reserves.