LNG

The Abu Dhabi National Oil Company (ADNOC) will need to invest more than $40 billion in order for the United Arab Emirates to attain natural gas self-sufficiency due to the complex nature of the country’s gas resources and as the UAE also expands LNG production.

The investment figure comes in a new report on ADNOC by the UK-based energy consultants Wood Mackenzie.

The report looks at the gas expansion plans, including sour and unconventional gas fields that were previously thought too complex technically and expensive to develop.

“The commitment to self-sufficiency is driving ADNOC to examine all options in its push for more gas,” said Alexandre Araman, the Principal Analyst of Middle East Upstream at Wood Mackenzie.

Growth strategy

“Its growth strategy, approved by the Supreme Petroleum Council, relies on the development of ultra-sour gas, unconventional and gas cap resources. Associated gas expansion is also expected to contribute as well as exploration and new discoveries,” the report said.

The report cites the Ghasha development as a critical piece of the self-sufficiency puzzle, with a target to produce 1 billion cubic feet a day of sales gas before 2030. 

The concession contains nine offshore fields in the Arabian Gulf.

“The high costs associated with an offshore ultra-sour gas development, the sulphur handling requirements and the typically low domestic gas prices result in challenging economics with cost estimates of at least $20Bln,” the report added.

The report cites the Shah Gas Development expansion as another key project and plans are underway to boost the total capacity to 1.85 bcf per day from the current level of 1.45 bcf per day.

“If this is approved, sales gas should increase from 0.74 bcf per day to 0.94 bcf per day,” said the report.

The report added that due to the ultra-sour nature of the gas at Shah, any development was always extremely challenging from both a technical and budget perspectives.

Other projects in the pipeline include large untapped unconventional gas resources at Ruwais Diyab as well as plans for developing gas caps and additional conventional gas resources, but the report states that technical issues and escalating costs could see the timelines stretched for many of the projects being planned.

Advancing

“ADNOC is moving swiftly to advance on all fronts via mega-development projects, ambitious production targets and IOC partnerships,” said Wood Mackenzie.

“But the complex and expensive nature of these resources has derailed progress with escalating costs and final investment decision delays,” it concluded.

Separately, ADNOC Gas is also development the Ruwais LNG project consisting of two liquefaction Trains of 4.8 million metric tonnes annum and total nameplate capacity of 9.6 MTPA.

The existing liquefaction plant on Das Island currently has export capacity of 6 MTPA.

Nov 22 (LNGJ) - Técnicas Reunidas, the Spanish engineering company, and a local partner in the United Arab Emirates were awarded a $950 million contract in Abu Dhabi for the world’s largest offshore sour natural gas development in the Ghasha concession.

   The award was made by Abu Dhabi National Oil Company and the work scope covers several fields with production capacity of around 340 million standard cubic feet per day by 2025. The offshore gas fields are located 190 kilometres northwest of the emirate of Abu Dhabi.

Abu Dhabi National Oil Company, the producer of oil and LNG for the United Arab Emirates, has concluded one of the largest ever deals for refining assets by selling a one-fifth shareholding to Italian energy company Eni for $3.9 billion as the UAE seeks to fund a long extension of LNG output and additional exploration and production activities.

The United Arab Emirates, the LNG producer that is expanding its natural gas and oil exploration in Abu Dhabi, has signed two concession agreements with Italian energy company Eni and its joint venture partner from Thailand, PTT Exploration and Production Company.

Abu Dhabi National Oil Company (ADNOC), the leading energy group in the United Arab Emirates and a long-standing LNG exporter with investment plans in downstream projects to boost natural gas production, has signed a deal to allow US energy services firm Baker Hughes-GE to acquire a stake in subsidiary ADNOC Drilling.

Chiyoda Corp. of Japan, one of the main builders of Middle East LNG export capacity, has signed an accord with the LNG production company of Abu Dhabi in the United Arab Emirates to provide digital technologies and analytics for its liquefaction plant.