Abu Dhabi National Oil Company (ADNOC) unveiled the discovery of gas totalling 15 trillion standard cubic feet on Sunday. It will allow the UAE to achieve self-sufficiency in gas and potentially become a net gas exporter.
As yet, Abu Dhabi has been tapping sour gas through the Shah gas project. The field is located in the Western region of Abu Dhabi. Its total production capacity is 1 bln cubic feet per day, however, there are plans to increase the capacity. Nonetheless, the UAE imports gas from nearby countries to meet the demand.
“The gas strategy will sustain LNG production to 2040 and allow Adnoc to seize incremental LNG and gas-to-chemicals growth opportunities, where they arise, from the UAE’s dynamic demand or supply position and evolving energy mix,” states ADNOC.
Adnoc will enhance the Hail, Ghasha and Dalma project that taps into Abu Dhabi’s Arab formation under the auspices of the new gas strategy. It will accommodate trillions of cubic feet of recoverable gas. The project will produce more than 1.5 billion cubic feet of gas per day. Moreover, Adnoc will unlock Abu Dhabi’s gas caps and unconventional gas reserves.
“The substantial investments we will make, in the development of new and undeveloped reservoirs, gas caps and unconventional resources, will ensure we can competitively meet the UAE’s growing demand for power generation and industrial use.” Dr Sultan Ahmad Al Jaber, Minister of State and Adnoc Group CEO said.
The world is strained to the limit of consuming 100 million barrels of oil per day. Oil uptake could potentially grow by 10 million bpd by 2040. Against the same period, the demand for natural gas will increase by 40 per cent. The need for polymers and petrochemicals will grow by 60 per cent.
Adnoc states that ‘sourness’ of parts of Abu Dhabi’s gas has been one of the major difficulties. Nevertheless, gas tariffication introduced in 2016 enabled market-based pricing. Also, the company’s access to advanced technology and wealth of experience will help to unlock more gas resources and increase value extraction.