GASCO plans to lift output by 25%

Abu Dhabi National Oil Company's main natural gas subsidiary plans to raise production by 25 per cent over five years.

The Abu Dhabi National Oil Company's (Adnoc) main natural gas subsidiary plans to raise production by 25 per cent over five years as increased oil drilling and a link-up with offshore fields lifts available supply. More supply from Abu Dhabi Gas Industries (GASCO) is needed both for the emirate's power stations and for Adnoc itself, which injects gas into oil reservoirs to squeeze out more hydrocarbons.

Production capacity of natural gas, or methane, would increase to 3.75 billion cubic feet (cu ft) a day, while production of ethane, the main feedstock for ADNOC's petrochemical plants, would triple to 3 million tonnes a year, said Mohammed al Suwaidi, GASCO's general manager. "In line with GASCO's vision to develop, operate and maintain associated and non-associated gas processing and transport facilities to meet the growth needs of the emirate of Abu Dhabi, we are currently executing a total of 11 major gas development and related projects," Mr al Suwaidi said.

He outlined the company's US$10 billion (Dh36.73bn) expansion plan in an interview with ADNOC's in-house publication. The release of the expansion plan follows the renewal of GASCO's joint-venture agreement with its foreign partners last week. According to the agreement, Adnoc will retain 68 per cent ownership of the company for 20 years, with 15 per cent held by Royal Dutch Shell and Total, and 2 per cent by Partex. GASCO's expansion centres on harvesting gas from increased oil production both on and offshore, but also includes development of the offshore Hail sour gas reserves.

The company produced about 60 per cent of the country's gas, Mr al Suwaidi said, and delivered about 2 billion cu ft a day to consumers. The balance of production is reinjected into oil wells to maintain pressure, or burnt in ADNOC's own power stations. Mr al Suwaidi indicated GASCO would see its first offshore gas delivered from the Abu Dhabi Gas Liquefaction Company (ADGAS) next year. The project is part of a scheme called the Integrated Gas Development that aims to pipe extra gas produced offshore to GASCO's processing plants for use in power stations.

ADGAS produces liquefied natural gas from offshore gas output, but Adnoc has said the company's capacity would not be expanded, and additional output of gas would be directed onshore to meet rising demand. Mr al Suwaidi said GASCO also planned to double output of sulphur, used in fertiliser production, and increase production of condensates, high-value liquids that are easily refined into transportation fuels. [e-mail]