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Business Energy

Abu Dhabi-Dubai announce mega gas project

‘Jebel Ali Project’ will feature Adnoc and Dusup working on developing gas reservoir



The Jebel Ali area will host the gas reservoir project being developed by Dubai and Abu Dhabi. The venture brings together Adnoc and Dusup.
Image Credit: File photo

Dubai: Abu Dhabi and Dubai are to jointly develop a gas reservoir, called “Jebel Ali Project” to support the UAE economy and ensure sustainable growth. The project covers a spread of 5,000 square kilometres between Dubai and Abu Dhabi, and could generate 80 trillion cubic feet of gas once the development reaches full speed.

In a statement, His Highness Sheikh Mohamed bin Zayed al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of UAE Armed Forces, said: "Together with my brother Sheikh Mohammed bin Rashed Al Maktoum (Vice-President and Prime Minister of UAE and Ruler of Dubai), we witnessed the announcement of Jebel Ali Project gas reservoir that Adnoc will develop in collaboration with Dusup..."

This venture will be a "new source of energy supplies to support national economy and sustainable growth plans in UAE."

Adnoc has already dug 10 wells as part of the initial works related to the project. The reservoir is within an area between Saih Al Sidirah and Jebel Ali.

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The agreement between Adnoc and the Dubai Supply Authority comes less than three months after the Supreme Petroleum Council in Abu Dhabi announced the discovery and addition of new hydrocarbon reserves estimated at 7 billion barrels of crude oil and 58 trillion cubic feet of conventional gas.

This contributed to the UAE moving to sixth spot - up by one - globally in terms of global oil and gas reserves, with a total reserves of 105 billion barrels of oil, 273 trillion cubic feet of conventional gas and 160 trillion cubic feet of standard non-conventional gas resources.

Dubai Supply Authority (Dusup) is responsible for "providing energy for Dubai by sourcing and distributing natural gas and LNG" to fuel the generation of power and production of water.

"We add significant value to Dubai by providing safe uninterrupted receipt, storage, production and transmission of natural gas and LNG through reliable infrastructure, effective operations and strategic planning," the company's mission statement notes. 

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The Adnoc-Dusup agreement comes in the wake of the "discovery of a huge stock of natural gas resources in a common area between Abu Dhabi and Dubai, covering 5,000 square kilometers. It represents one of the "largest discoveries of natural gas".

Second mega-alliance

This would be the second big alliance featuring Dubai and Abu Dhabi companies - in early 2018, the formation of such a partnership beween Emaar and Aldar Properties was announced. The plan, announced at the time, was to create Dh30 billion worth of joint investment projects.

Sharjah's gas find

Interestingly, it was just last week that the Sharjah National Oil Corporation announced the discovery of an in-land gas field. The natural gas and condensate field has "flow rates of up to 50 million standard cubic feet per day, along with the liquids associated with it," Sharjah had announced at the time.

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