ADNOC Plans to Increase Gas Output

State-run Abu Dhabi National Oil Company (ADNOC) aims to boost gas output from its offshore fields by 1 Bscf/d of gas by 2013, a senior official said.

The UAE holds the world's fifth-largest gas reserves, but has failed to keep up with rising domestic demand from power plants and industry. The country depends on gas imports from Qatar to fire power stations and meet the needs of industry.

As part of measures to boost output, ADNOC plans to connect offshore gas production with its online grid, and the first stage of that would be completed in the first-quarter 2010, Ismail Al Ramahi, manager at the gas processing division of ADNOC, said during a speech at an industry event.

The second stage would start in 2013, he added. The state firm expected to see first production from the joint-venture with ConocoPhillips at the Shah sour gas field by late 2013 or early 2014, Ramahi said.

The gas at Shah has a content of around 30% of deadly sulphur dioxide, making it tougher to produce than conventional gas reserves.

The project, with an estimated cost of US$10 billion, was expected to pump around 540 Mscf/d of gas to the national grid after processing1 Bscf/d of raw gas from Shah.

Aside from the offshore gas and the sour gas at Shah, ADNOC was also planning to substitute nitrogen and carbon dioxide for natural gas it currently injects in oilfields to maintain pressure and output of oil, he said. That would free up more gas for domestic supply, he added. Adnoc's current gas output is around 6 Bscf/d, he said. - Gulf Daily