Abu Dhabi National Oil Company (ADNOC) has invested an estimated US$25 billion on gas projects that are currently under construction, according to the chief executive officer of Gasco
Gasco chief executive officer of Mohammed Sahoo Al Suwaidi said, “ADNOC presently invests around US$40 billion in oil, gas, refining and petrochemical projects, out of which US$25 billion alone are dedicated to gas projects.”
The gas projects include the Integrated Gas (IGD) and Shah Gas development projects. According to Al Suwaidi, ADNOC will soon be launching an effort to further develop onshore reserves, with an additional emphasis on developing offshore gas resources.
Two key reasons for ADNOC opting to focus on natural gas developments have been cited as the expanding global demand for natural gas and the need for the UAE to find an increasing capacity of gas to satisfy domestic demand.
Al Suwaidi argued that, although the UAE produces significant volumes of gas, there was still a great deal of room for improvement. He said the UAE has 3.2 per cent of global gas reserves, but produces only 1.6 per cent of the world’s supply.
Another factor is that ADNOC now has the capacity to increase its natural gas supply thanks to new technologies that have made production easier and the process of develop unconventional natural gas fields, including shale gas, tight gas, and sour gas, more economical.
Al Suwaidi highlighted the importance of technology when he discussed a recent innovation first tested in Abu Dhabi by Elixier, a joint venture between Linde and ADNOC. Elixier was able to free 300 to 600 million cubic feet of natural gas per day for use as a clean fuel by injecting nitrogen into a condensate reservoir in Habshan for pressure maintenance.
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