Sharjah signs Petrofac for $40m gas stockpiling venture
Dubai: Sharjah National Oil Corporation has granted the $40 million Moveyeid Gas Storage Surface Facility Project to Petrofac Facilities Management International Ltd.. This is the second such gas stockpiling venture in the UAE after Dubai’s.
It will be finished one year from now. The task focuses on independence in gas creation and the administration of organic market inside the residential market. “The entire thought of gas stockpiling venture originated from dealing with the tremendous regular varieties in gas request,” said Hatem Al Mosa, CEO of SNOC.
“A storeroom would balance out this. A key gas storeroom for Sharjah was likewise a key thought to proceed with this undertaking.”
The task includes a high-pressure blower office, a high-pressure pipeline and stream lines to four existing wells in Moveyeid Field. Extra venture scope remembers boring flat legs for existing wells, and conceivably boring new wells in 2023.
Why go for gas stockpiling now
Building a gas stockpiling in Sharjah isn’t an all-new thought. SNOC had been in making arrangements for quite a while, to oversee request and supply factors connected Sharjah’s own creation and utilization.
“The undertaking will permit us to store overabundance gas in the winter to fulfill top summer request,” the CEO said. “It will likewise give a promptly accessible vital hold to react to sudden operational or market issues where availability and nearness become generally basic.”
At first, the venture was connected to the import of condensed petroleum gas (LNG) for residential utilization. In any case, the import-connected undertaking was retired after the ongoing gas revelation in Sharjah. The capacity task will currently concentrate on locally delivered gas for better and ideal interest and supply the executives.
“Gas stockpiling has been on the Sajaa Asset plan since 2003,” the CEO said. “SNOC possesses the perfect repository for such a venture as far as size, closeness to pipeline foundation, network and creation. In any case, the notable incessant deficiency of gas to give the pad gas kept the undertaking from turning into a reality around then.”
New gas disclosure
SNOC and its Italian accomplice Eni recently declared the disclosure of ‘Mahani’, an inland gas field with a limit of 50 million standard cubic feet for every day. The new gas disclosure, alongside other ongoing revelations in the emirate, incited SNOC to proceed with the capacity venture.
“We authorized an examination on the monetary reasonability for capacity, including specialized achievability,” said Al Mosa. “With positive outcomes from both we have appointed and granted the venture and it will be prepared one year from now with noteworthy future development.”
Effect of COVID-19
SNOC and its accomplice Eni, said that the flare-up of coronavirus won’t have any significant effect on the task calendar and its reasonability. SNOC plans to actualize the venture in stages, with the surface offices to be authorized before the finish of 2020 and penetrating in 2023.
“We expect the effect of coronavirus to keep going for an additional two months and it won’t have any material effect on the Mahani venture plan,” said Fuad Krekshi, Executive Vice-President – Middle East, Eni.
In any case, the Eni official included that financial effect of the flare-up joined with worldwide oil and gas request will affect different undertakings it is at present surveying.
While the creation from the Mahani field expected to begin from the finish of this current year, SNOC said its current gas creation isn’t affected by coronavirus. “COVID-19 will have some effect on our timetables, yet we accept our objective of beginning creation from Mahani is sensible,” said Al Mosa.
Worldwide interest, costs
Worldwide oil and gas costs have been confronting serious descending weights following the flare-up and huge decrease in worldwide interest. Examiners anticipate request and thus costs to stay discouraged for quite a while.
Regardless of the troubling interest situation, SNOC said the task isn’t connected to the worldwide market powers as it is focused at submitted request from Sharjah, to a great extent from power area followed by modern.
“We see least effect from the present market strife and value unpredictability. Our provisions are completely attached to Sharjah’s market request. Therefore cost has no effect, so is worldwide interest on our venture,” said Al Mosa.