ADNOC Gas PLC Expands Natural Gas Processing Capacity with New FEED Contract
In a significant advancement for the United Arab Emirates’ energy sector, the Abu Dhabi National Oil Company (ADNOC), through its majority-owned subsidiary ADNOC Gas PLC, has awarded a pivotal contract to the engineering firm Worley Ltd., specifically to its subsidiary Worley Engineering Pty. Ltd. The contract, which was granted on December 4, encompasses front-end engineering and design (FEED) services for the ambitious Bab Gas Cap (BGC) project located in Abu Dhabi. This initiative aims to augment the region’s natural gas processing capabilities, critical for meeting both domestic demands and regional energy strategies.
Elevating Processing Capacity
The BGC project is particularly notable as it seeks to enhance ADNOC Gas’ existing gas processing capacity, which currently stands at approximately 10.2 billion cubic feet per day (bcfd). The new developments anticipated under the contract are designed to elevate this figure by more than 1.8 bcfd, marking a 20% increase. By 2029, ADNOC aims to achieve an overarching processing capacity of 13.2 bcfd, which is integral to unlocking the considerable natural gas resources available within the UAE and bolstering the country’s objectives of achieving gas self-sufficiency.
Addressing a recent presentation, ADNOC Gas outlined the design specifications for the BGC project, underscoring its comprehensive approach to optimizing the production of natural gas liquids (NGL), condensate, sales gas, and sulfur. Key components of the project will include:
– Two operational trains dedicated to acid gas removal, dehydration, and NGL recovery.
– One specialized acid gas enrichment unit.
– A unit for sulfur recovery, alongside a tail gas treatment unit.
Crucially, the project is set to incorporate advanced installations designed for carbon dioxide capture, utilizing yet-to-be-determined technologies for effective CO2 management. Additionally, the construction will feature injection systems and ancillary utilities, reflecting a commitment to sustainability and innovation in gas processing.
Infrastructure Development and Economic Impact
The project’s infrastructure will also include the engineering and routing of new pipelines for the efficient transportation of liquid sulfur to ADNOC’s Habshan sulfur granulation plant, which boasts a capacity of 3.5 million tonnes per year, located within the expansive Al Ruwais industrial complex in Al Dhafrah, Abu Dhabi.
Looking forward to the timeline, ADNOC Gas plans to make a final investment decision by 2026, with an estimated project cost exceeding billion. The feedstock for this processing complex will be derived from rich gas resources from the Bab field, approximately 160 kilometers southwest of Abu Dhabi city. Recent upgrades within this field now facilitate the concurrent production of oil and gas, with a potential yield of 1.5 bcfd of gas and an additional 80,000 barrels per day of condensate.
Meeting Growing Gas Demand
With the BGC project poised for potential completion post-2029, ADNOC Gas is strategically positioning itself to address the anticipated surge in natural gas demand within the UAE. In a recent earnings announcement, the company disclosed plans to bolster its capital expenditure for 2025-2029 from an initial billion to billion. This increase is designed to accommodate the growth in domestic gas consumption and to support major ongoing projects.
ADNOC’s current project slate is intensive and focused on three large-scale developments, which include:
– The Maximization of Ethane Recovery and Monetization (MERAM) project, projected to deliver up to 3.4 million tonnes per year of ethane and NGL production capacity.
– The Integrated Gas Development Expansion Phase 2 (IGD-E2) project, anticipated to achieve a processing capacity of 370 million cubic feet per day.
– The Ruwais LNG project, which will be capable of producing up to 9.6 million tonnes per year of low-carbon liquefied natural gas (LNG).
Together, these projects illustrate ADNOC Gas’s comprehensive strategy to enhance its operational capabilities while addressing the pressing need for increased energy supply in the region.
In summary, the strategic developments under the BGC project not only signify ADNOC Gas’s commitment to expanding its processing capabilities but also reflect ongoing efforts to harness the UAE’s natural gas resources efficiently. The projected advancements in technological innovation and infrastructure development stand poised to elevate the UAE’s role in the global energy landscape.
Tags: #BusinessNews, #EconomyNews, #UAE, #EnergyProduction, #NaturalGas