Abu Dhabi’s new natural gas distribution project for commercial and residential purposes through a pipeline network has moved forward with the project management consultancy (PMC) contract awarded to a local company.
Lootah BC Gas with offices in Dubai and Abu Dhabi has been awarded the PMC contract by Adnoc Distribution, a subsidiary of Adnoc that is overseeing the project. Abu Dhabi embarked on the estimated Dh1 billion project in the last quarter of last year to create a gas grid and supply natural gas to households and some commercial users through a domestic pipeline network. “The PMC work by Lootah BC Gas is due to start shortly and it will comprise market study, the investment outlay, the design and related works and is expected to take six to eight months,” a senior official involved with the project told Gulf News.
Some four companies had bid for this contract.
In the first phase, the natural gas distribution network will cover some 120,000 residential and commercial users in Abu Dhabi, Al Ain and nearby areas.
Abu Dhabi will have an abundance of natural gas once major expansions currently under way come on stream. The Onshore Gas Development (OGD-3), the Asab Gas Development (AGD-2) and other developments such as Dolphin Gas will make available more gas in the coming years.
Besides, natural gas is cheaper, efficient and environment-friendly, especially when it is made available in plenty. The Abu Dhabi Gas Industries Co (Gasco) will supply the gas for the project. Lootah BC Gas has also undertaken the Sharjah gas grid project. Meanwhile, Abu Dhabi’s $1.5 million compressed natural gas (CNG) project is under way and is likely to get operational later this year in its first phase of introducing CNG for taxis. Adnoc Distribution is involved in setting up this project where 48 selected taxis will be the first users of CNG.