UAE sour gas to meet rise in power demand

With two of its multi-billion sour gas projects under way, Abu Dhabi has been looking to develop its sour gas reserves to meet the emirate’s power needs on a local level.

One of its most high profile projects on the onshore Shah field is predicted to be operational in early 2015 and help meet local power demand by producing an impressive 14.2mn m3 of gas per day.

The $10bn project is a joint development between ADNOC and US-based Occidental Petroleum.

When it becomes operational in 2020, another sour gas project in the Bab field is expected to contribute an additional 14mn m3 of gas per day to already available stocks.

The project is a joint venture by ADNOC and Shell, located around 150km to the south west of the city of Abu Dhabi.

Gas is used to generate electricity, for water desalination and as a raw material for a number of rapidly developing industries in the emirate.

Currently the emirate’s existing gas production is focused on exports, while the gap in domestic demand is being filled in via imports from Qatar.

The emirate is looking to decrease its imports and start meeting its domestic power demands by investing in sour gas and generally developing its natural gas supplies.

Alongside its existing on and off-shore gas projects, the Hail field’s reservoir located off Abu Dhabi’s coast is also holding huge potential for natural gas production and is currently attracting attention for future investment.