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Dubai Petroleum has awarded Lamprell a contract for a project covering the expansion of the Margham gas storage and processing facility, which is operated by state-owned Dubai Supply Authority (Dusup).

Lamprell’s scope of work on the contract includes engineering, procurement and construction (EPC) of civil works, pipe rack structures and associated infrastructure installation. Work on the contract will be delivered by Lamprell’s onshore division.

The contract awarded to Lamprell by Dubai government-owned Dubai Petroleum forms part of a wider project known as the Sunrise development programme. The aim of the scheme is “to support future capacity enhancements required to meet projected gas demand and the integration of renewable energy sources for end users across the [UAE],” Lamprell said in a statement.

Lamprell is primarily a contractor and services provider in the offshore oil and gas and wind energy sectors, with its main clients including Saudi Aramco, Abu Dhabi National Oil Company (Adnoc) and QatarEnergy. The company has operational bases in Dammam and Ras Al-Khair in Saudi Arabia, while its bases in the UAE are in Hamriyah in Sharjah and Jebeli Ali Free Zone in Dubai.

The company was previously listed on the London Stock Exchange, from where it delisted following a takeover offer from a consortium of Blofeld Investment Management and AlGihaz Holding for its Saudi Arabia business in 2022. AlGihaz Holding later took full ownership of Lamprell.

“Expanding our onshore EPC capability is a key pillar of Lamprell’s strategy, and this award directly supports that objective,” Ian Prescott, Lamprell’s CEO, said.

“We appreciate the confidence [Dubai Petroleum] has placed in Lamprell and look forward to working with our long-standing, valued client. Delivering critical energy infrastructure in the UAE strengthens our onshore portfolio, demonstrates local execution capability and positions the business for further growth in this market,” Prescott said.

The Margham gas field and associated processing plant are located on the Dubai-Hatta road. It is the largest gas field onshore Dubai. The field contains three gas-bearing geological formations more than 10,000 feet below the surface.

The Margham field came online in 1984 and has been developed with production and injection gas wells that are connected through a gathering system to the processing plant.

Initially, the gas was processed to remove water for disposal and condensate for sale and the dry gas was reinjected into the reservoir. At present, the dry gas is sent by pipeline to the Dubai gas grid.

The gas plant separates the heavier hydrocarbons components and formation water from the gas through a series of cooling, pressure reduction and phase separation steps.

The remaining gas stream, substantially free of liquid components, can be either flowed directly to the Dubai gas grid or compressed to a higher pressure if required.

The raw condensate is brought to product specification by further removal of water and stabilised by distillation. The stabilised condensate is moved by pipeline to Dubai’s main crude oil refinery at Jebel Ali.

The Margham field has functioned as a strategic gas storage facility for Dubai since 2008, with the ability to inject gas into the reservoir or produce gas to meet Dubai’s seasonal fuel gas requirements.