BAKU, Azerbaijan, Feb.5
By Leman Zeynalova – Trend:
A new gas discovery in the United Arab Emirates (UAE) is not enough to turn the country into a net gas exporter by 2030, Trend reports with reference to Rystad Energy analysis.
Exploration and development at an 80 trillion cubic feet gas reservoir in the Jebel Ali area will be carried out by state-owned Abu Dhabi National Oil Company and the Dubai Supply Authority.
The reservoir has been discovered to contain what is referred to as "shallow gas", as it contains high-quality organic gas at relatively shallow depths from the Earth’s surface.
The gas produced from the reservoir will be supplied to Dubai.
The UAE accounts for about 4 per cent of global oil production, with much of the output from fields owned and managed by ADNOC.
Rystad Energy, the independent energy research and consulting firm headquartered in Norway, notes that it is too early to conclude on Jebel Ali’s total volumes considering the find covers an area of 5,000 square kilometers and will need more appraisal wells to pinpoint the exact extent of the hydrocarbon spill point.
“However, even if this new discovery turns out to have only 8 trillion cubic feet of recoverable resources – one-tenth of the preliminary official estimate – that would still be enough to enable UAE to become energy independent by 2030, potentially removing its reliance on import volumes from neighboring countries like Qatar. We also see a decline in domestic gas demand after 2030 that will further limit the need for imports,” said the firm.
The report shows that in UAE, natural gas is the primary fuel for power generation, with electricity demand projected to reach 157 terawatt-hours by the end of this year. “In addition, the country uses gas for reinjection into oil fields as part of enhanced oil recovery (EOR) projects. To meet this growing demand, the UAE is moving forward with development of sour-gas fields that were discovered in the 1980s.”
“The announcement that ADNOC and Dubai have agreed to jointly develop the new gas find is a promising sign as this could expedite the development of the new resource and bring additional gas volumes by 2025. Another positive element is that the cost associated with bringing the shallow gas resource on stream is expected to be much lower than the more technically complicated development of Abu Dhabi’s sour gas reserves.”
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