South Korea’s Samsung Engineering announced on Tuesday that its joint venture (JV) with Technip Energies and Tecnimont has received a Letter of Award (LoA) from ADNOC for a Pre-Construction Services Agreement (PCSA) for the Hail & Ghasha Gas Development Project.

The overall contract value to the joint venture for the early engineering and procurement works on the onshore facilities is approximately $80 million, according to a press statement by the company.

The PCSA scope of work also includes the preparation of an Open Book Estimate for the full project delivery scope, which will be considered as part of the Client’s Final Investment Decision (FID) making process.

Location of the Hail & Ghasha Gas Development Project in Abu Dhabi, UAE
Location of the Hail & Ghasha Gas Development Project in Abu Dhabi, UAE
Location of the Hail & Ghasha Gas Development Project in Abu Dhabi, UAE

The award comes as ADNOC accelerates gas expansion, as part of its low carbon growth strategy, to enable domestic gas self-sufficiency as well as to meet growing global demand.

Samsung Engineering’s previous track record in the UAE includes 10 projects such as the Borouge-3, Fertil-2 Ammonia & Urea Complex and more recently ADNOC Refining Crude Flexibility Project. The company has already executed a gas megaproject for ADNOC, the Shah Sour Gas Development, which has similar production capacity as Hail and Ghasha Gas Development Project.

Hong Namkoong, President and CEO of Samsung Engineering said, "We are proud and honored to receive these early awards and be involved in one of ADNOC’s flagship megaprojects. Based on our expertise in the UAE market, extensive know-how in gas development projects, as well as our own unique project delivery solution under the “AHEAD” execution model, we, together with our joint venture partners, are confident in executing the project successfully and meeting the expectations of ADNOC and their international concession partners.”

In a separate statement, Technip Energies said the PCSA phase follows the completion of the updated Front-End Engineering and Design (FEED) for the entire development by the French firm. It said PCSA will cover early project activities for onshore facilities, such as Initial Detailed Engineering and Procurement services of critical Long Lead items. 

(Writing by Anoop Menon; Editing by Bhaskar Raj)