ABU DHABI - The Gas Sector & OGD/AGD Projects.

Gas production capacities in Abu Dhabi have risen from 1,800 MCF/d in 1992 to more than 4,000 MCF/d, with 3,000 MCF/ d produced onshore. Most of the production is associated gas. More than 25% of the onshore gas output is being re-injected into the oilfield. The rest is supplied to Gasco which has a major gas liquids complex at Ruwais. Most of the offshore gas goes to the LNG export complex on Das Island. Gasco is in charge of the gas sector and its projects.

The SPC, ruling over the petroleum sector, had decided in 1991 to launch the Onshore Gas Development (OGD) programme, with the cost then estimated at about $2 bn, based on developing Thamama gas at the Bab and Asab fields and ADCO's other structures close to the Habshan area. This was prompted by rising demand for re-injection into the oilfield, for domestic consumption and for export in liquid form.

Development of Bab gas, called OGD-1 or Project 545, has cost $1.35 bn. Completed in November 1996, this raised output and processing at Habshan from 540 MCF/d to 1,865 MCF/d. It raised to 131,000 b/d the condensate recovery rate, from 5,000 b/d. Most of the condensates were exported until the condensate units at the Ruwais refinery came on stream. The second phase, OGD-2, costing $1.4 bn and completed in early 2001, raised gas production by another 1,100 MCF/d. OGD-2 gas is processed at Habshan to produce 55,000 b/d of condensate, about 500 t/y of NGL, and 2,100 t/d of sulphur. An important part of the gas goes for domestic consumption. A gas pipeline links Bab to Maqta and the Taweelah-B power station. This consists of 42-inch, 125 km pipe from Bab to Maqta and a 36-inch, 57 km pipe from Maqta to Taweelah. OGD-2 turned Habshan into one of the world's largest gas processing centres with gas treatment capacity of 3,000 MCF/d (see background in Vol. 56, Gas Market Trends No. 2).

The related Asab gas development project (AGD-1), costing about $700m and completed in 1999, has increased production by 856 MCF/d of wet associated gas from Thamama F and G formations under Asab's oil reservoirs, plus about 95,000 b/d of condensates stripped out. The remaining dry gas is re-injected into the reservoirs to maintain pressure. A system injecting gas into the North Shuaiba reservoir was installed at end-1995. A gas gathering network from Thamama C and F linking up with OGD was completed in 1996.

OGD-3, the third phase of the onshore gas development, now is the largest single investment targeting associated gas at Bab. To cost $1.3 bn, this will increase wet gas production by 1,200 MCF/d and condensate production by 150,000 b/d. In parallel is the $1-1.2 bn AGD-2 project. This will sweeten up to 740 MCF/d of gas at two new trains and will add two NGL recovery trains. Related to these, Gasco is to have one gas plant built at Habshan and one at Asab, and will have a new gas pipeline built to Ruwais. Bechtel has the FEED contract to be completed by mid-2003. After recovery of condensates and NGL, the gas will be re-injected into Bab's Thamama F oil reservoir to maintain pressure. Foster Wheeler has the PMC contract. When completed by 2006, OGD-3 will raise condensate production to almost 450,000 b/d. Gasco is also planning to have a new processing plant and 20 condensate storage tanks built at Ruwais for Takreer.

Onshore gas is the source of supplies to Dubai, which began in late 2000 through a 65-km pipeline from Abu Dhabi's domestic network to the Jebel Ali free zone. Under an agreement signed in 1998, Abu Dhabi gas supplies to Dubai average 500 MCF/d. By 2004, the volume should increase to 800 MCF/d. Both Abu Dhabi and Dubai are to import gas from Qatar through the Dolphin programme which is also to supply Oman and Pakistan in future (see Gas Market Trends No. 3 of next week).