Monday 20 May 2019

Adnoc outlines new integrated gas strategy

ABU DHABI, November 14, 2018

Abu Dhabi National Oil Company (Adnoc) outlined its new integrated gas strategy and downstream growth plans at a key forum held on the sidelines of Abu Dhabi International Petroleum Exhibition and Conference (Adipec) which was attended by more than 800 global oil and gas executives.

Speaking at the Gas, Refining and Petrochemicals Forum, the senior anagement of Adnoc briefed the Adipec delegates on details of the company’s plans to achieve self-sufficiency in gas and transition to becoming a net gas exporter.

They also provided updates on company’s downstream plans to expand its refining capacity, triple petrochemicals production and grow its international downstream footprint with targeted investments, said a statement from Adnoc.

Investment in additional commercial gas resources will see Adnoc unlock value from offshore ultra-sour gas, gas cap and unconventionals development, it added.

Adnoc provided further details of how its new integrated gas strategy, recently approved by Abu Dhabi’s Surpreme Petroleum Council (SPC), will drive the development and delivery of new gas resources.

At its meeting, the SPC announced new discoveries of gas in place, totaling 15 trillion standard cu ft.

Abdulmunim Al Kindy, the director of Adnoc’s Upstream Directorate, said: "Today’s forum has provided an opportunity for global industry leaders to learn about the company's approach to growing its commercial upstream gas supply and to gain detailed insights into its new gas strategy and the progress we have made in delivering our ambitious refining and petrochemical growth plans."

"Our significant investment in commercially developing our gas resources will enable us to achieve self-sufficiency in gas and transition to being a net exporter of gas. At the same time, it supports our ongoing journey to become a leading, global downstream player that positions Abu Dhabi and the UAE as a major hub in the global refining and petrochemicals value chain," he added.

Adnoc’s integrated gas strategy is the first time in its history it has been in a position to commercially unlock its abundant gas resources.

Under the new strategy, the Abu Dhabi group will develop the Hail, Ghasha and Dalma mega-project that taps into Abu Dhabi’s Arab formation, which is estimated to hold multiple trillions of cubic feet of recoverable gas.

The project is expected to produce more than 1.5 billion cu ft of gas per day around the middle of the next decade, it stated.

Adnoc said it will also unlock other sources of gas, which include Abu Dhabi’s gas caps and unconventional gas reserves, as well as new natural gas accumulations, which will continue to be appraised and developed as the company pursues its exploration activities.

Adnoc’s unconventional resources are expected to produce 1 billion standard cubic feet of gas per day, before 2030, while the development of its gas caps is expected to produce an additional 500  million standard cubic feet of gas per day for processing by 2030, from its Umm Shaif gas cap.

Meanwhile, the Abu Dhabi government’s historic decision, earlier this year, to open six oil and gas blocks for competitive bidding is expected to identify significant further gas resources. The six onshore and offshore blocks are estimated to hold multiple trillion cubic feet of gas.

On Sunday, Adnoc announced the awarding, to Total, of a 40 per cent stake in the Ruwais Diyab unconventional gas concession. Under the terms of the agreement, Total will explore, appraise and develop the concession area’s unconventional gas resources.

Also yesterday (Tuesday), another agreement was signed by the company with Eni, awarding it a 25 per cent stake in the Ghasha concession, comprising the Hail, Ghasha, Dalma and other offshore fields.

Adnoc’s new gas strategy will also sustain its LNG production to 2040 and allow Adnoc to seize incremental LNG and gas-to-chemicals growth opportunities.

During the forum, Adnoc gave an update on the progress made in delivering its downstream refining and petrochemicals strategy, unveiled earlier this year, when the company announced a plan to invest Dh165 billion in its downstream value chain, which will see the company triple production of petrochemicals to 14.4 million tons per annum by 2025.

Adnoc also plans to create the world’s largest integrated refining and petrochemicals complex in Ruwais, which will enable it to further stretch the value of every barrel it produces.

Abdulaziz Al Hajri, the director of Adnoc’s Downstream Directorate, said: "We are accelerating delivery of our feedstock engines, petrochemical integration and the Ruwais Derivatives and Conversion Park – all key initiatives aimed at significantly expanding the company’s downstream operations."

"At the same time, we continue to actively seek to create long-term partnerships, providing access to opportunities across the value chain for both investors and partners, as we add more value to every barrel of crude oil and natural gas we produce," he added.

Besides Al Kindy and Alhajri, the speakers at the forum included Fatima Al Nuaimi, the acting CEO of Adnoc LNG and Abdulla Ateya Al Messabi, the manager of refining and petrochemicals business unit at Adnoc Refining.-TradeArabia News Service

Tags: Adnoc | adipec | gas strategy Abu Dhabi |

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