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    Abu Dhabi, Dubai Renew Gas Contract

Summary

Adnoc and the Dubai Supply Authority (Dusup) have extended a 20-year contract that was due to end in 2021 by 15 years. Adnoc is also investing upstream in sour gas.

by: William Powell

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Natural Gas & LNG News, Middle East, Security of Supply, Corporate, Import/Export, Infrastructure, Liquefied Natural Gas (LNG), Pipelines, News By Country, United Arab Emirates

Abu Dhabi, Dubai Renew Gas Contract

Abu Dhabi National Oil Company (Adnoc) and the Dubai Supply Authority (Dusup) have extended a 20-year gas supply contract that was due to end in 2021 by 15 years, they said February 6.

They gave no volume but indicated that the gas will flow from Taweelah to Jebel Ali, currently also home to Dubai's floating LNG import terminal. Dubai also buys Qatari gas which flows through the Dolphin pipeline.

Adnoc said it would make "smart investments in the development of additional gas reserves. This will enable us to deliver against our strategic objective of providing a sustainable and economic supply of gas to the United Arab Emirates.”

As part of its 2030 smart growth strategy, Adnoc said it plans to access undeveloped tight reservoirs, tap into its gas caps and expand sour gas production, ensuring that it delivers a sustainable and economic gas supply. In addition, it has begun an exploration drilling programme to explore for, and appraise, the potential of individual gas deposits in tight reservoirs.

Last month, Adnoc awarded two front-end engineering design (Feed) contracts for Adnoc’s planned offshore ultra-sour gas mega project, consisting of the Hail, Ghasha and Dalma fields, from which Adnoc expects to produce more than 1bn ft³/day – enough gas to provide electricity to 2mn UAE homes.

The Golar-owned Golar Freeze floating LNG import terminal has 4bn m3/yr regas capacity and has been moored at Jebel Ali since 2010 on a charter to Dusup that was to have run until May 2020 but which was shortened by one year to now end 2019.