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Shah Sour gas project on track

Haseeb Haider / 24 June 2010

ABU DHABI — Abu Dhabi Gas Development Co Limited, which is developing the Shah Sour gas project, on Wednesday said that $10 billion project is on track for completion in 2014.

“The company is going ahead with its project even after the pull out of a joint venture partner US energy services firm ConocoPhillips,” its chief executive officer Saeed Al Ghafli said.

Speaking to reporters after signing contracts worth over Dh1 billion with Al Jaber Energy Services and US energy services firm Honeywell, the chief executive said that he is unaware about talks to replace ConocoPhillips with Shell Dutch or other international companies.

“Abu Dhabi National Oil Company, or Adnoc, which is the owner of the Shah Sour gas development project, would only know of any such talks,” Al Ghafli said.

Abu Dhabi Gas Development Co Ltd, a subsidiary of Abu Dhabi National Oil Company, awarded two contracts worth Dh1.101 billion to Al Jaber Energy Services while another contract was awarded to Honeywell, but it’s value was not disclosed.

In the rest of the year, the chief executive expects two more contracts to be awarded including a major contract for the construction of a sulphur granulation plant and for constructing the non-process buildings. He didn’t put the price tag to both contracts, as the engineering and design studies for the Sulphur plant is not out. However, Al Ghalifi said award is targeted for the last quarter of the year.

Abu Dhabi is developing the Shah sour gas field to meet the growing domestic needs. The development include development of wells and gathering systems, construction of a gas sweetening and treatment facility in Shah with a processing of capacity of 1 billion cubic feet of sour gas containing 23 per cent of hydrogen suplhide and 10 per cent of carbon.

Earlier, a senior official told Khaleej Times that total cost of the project is estimated at $10 billion. Till now six out of total 10 packages on the project have tendered out with total value exceeding $5.6 billion.

Al Ghafli said many contracts have been awarded on prices less than anticipated, as raw material prices are affected by global economic situation. He said that signing of these packages is the beginning of several other projects that will be launched in the near future. This mega project constitutes a new era for gas production and processing in Abu Dhabi where one billion cubic feet of sour gas will be produced and processed daily.

The contracts were signed in Shaikh Khalifa Energy Complex by Saif Ahmed Al Ghafli, the chief executive officer of Abu Dhabi Gas Development Co Limited and Obaid Khalifa Al Jaber, chairman of Al Jaber Energy Services LLC, and Norman Gildorf, President of Honeywell Process Solutions.


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