UAE Plans to Increase Crude Output

Gas Crunch

While blessed with an abundance of accessible crude – reserves are estimated at about 92 billion barrels – Abu Dhabi is having more difficulty in producing enough gas to meet domestic requirements.

“It seems like we’re going to be a net importer of natural gas since there is no way that we can meet our domestic demand from existing sources,” said Al Hamli.

Gas import and export volumes in Abu Dhabi are now almost evenly matched, say energy officials.

The emirate exports natural gas it produces on its offshore fields to Japan. This leaves it short at home, and Abu Dhabi and Dubai draw on gas imported from Qatar via the Dolphin Energy pipeline.

In addition, Dubai buys liquefied natural gas (LNG) from the international markets. Abu Dhabi is set to follow suit and is building an LNG import terminal in Fujairah.

Abu Dhabi holds about 5 percent of the world’s proven reserves, but much of it is sulfur-laced sour gas, which is expensive to produce. ADNOC has responded to rapidly increasing demand by launching a major project to extract and process sour gas.

Al Hosn, a joint venture between ADNOC and the American company Occidental, will complete the Shah gas development by 2014, adding 500 million cubic feet of gas per day to the domestic supply.


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