The Shah sour gas field development is expected to start up in 2014, Saif Al Ghafli, CEO of the ADNOC-Conoco Phillips JV project has revealed.
Speaking at the Sour Oil and Gas Advanced Technology (SOGAT) conference in Abu Dhabi, Al Ghafli explained that the final investment decision from the owners is due in the coming weeks.
Al Ghafli also revealed the high sulphur content in the Shah gas field. “The sulphur content of gas from the Shah Field is around 23%. To put this into perspective, Wasit Field is only 12%.”
Project costs were also discussed during the CEO’s opening speech at the SOGAT conference. Cost revisions were late last year believed to have decreased to $10bn from the initial $12-13bn. “The operating company and project owners are happy with current costs,” Al Ghafli stated.
The project owners have been debating the use of rail over a pipeline for the Shah gas field. “There are ongoing discussions between ADNOC and Union Railways. This will have implications on other project packages, most notably on the sulphur granulation plant, which will be moved to the Shah site as opposed to the Ruwais export terminal,” said Al Ghafli.
The Shah sour gas project will produce 1 billion standard cubic feet of gas per day for processing, when it commences, Al Ghafli stated. “Abu Dhabi ultimately needs its gas and the project is going ahead,” he concluded.
Earlier this month the Al Jaber Group was awarded the US$300m construction contract for the Shah Gas project. It has been reported that up to $10bn worth of contracts will be awarded on the project in the first half of 2010.
Additional reporting from Abu Dhabi by Daniel Canty.
