Abu Dhabi: The Abu Dhabi Gas Development Company (Al Hosn Gas) is committed to delivering the onshore sour gas field — Shah — by late 2014 and the project would deliver 500 million cubic feet per day of clean gas and significant volumes of condensates, natural gas liquids and sulphur upon completion, Al Hosn Gas’ Chief Executive Officer Saif Al Ghafli said yesterday.
“As the first ever unconventional development of sour gas resources in the Arabian Gulf, the Shah gas development represents a new era in regional gas development, and is watched with great interest by the industry. We have made excellent progress so far — the facilities and pipelines are over 60 per cent complete and drilling is over 20 per cent complete as of today,” Al Ghafli said in his keynote address at the 2nd KPMG GCC Energy Conference in the capital.
“This landmark project, using cutting-edge technology will not only fuel growth, industrial development and employment opportunities, but will also create sustainable wealth for our citizens far into the future,” he added.
Al Hosn Gas is a joint venture of Abu Dhabi National Oil Company (Adnoc) and Occidental Petroleum, an international oil and natural gas exploration and production company.
The capital value of the project and company establishment is about $10 billion. The Shah gas field is located 210 km south west of Abu Dhabi city. It is estimated to contain a very high 23 per cent potentially toxic hydrogen sulfide or H2S.
Al Ghafli said Abu Dhabi has identified diversification of energy sources as a key strategy to ensuring future energy security.
“A number of steps are being taken in this regard, such as construction of nuclear power plants, utilities-scale solar power plants, LNG (liquefied natural gas) import terminal at Fujairah. It is anticipated that about 25 per cent of UAE’s energy needs will be met from nuclear resources by 2030. Such diversification ensures that energy is available when needed, meets seasonal demand swings and above all, is affordable,” Al Ghafli added.
