OPEC to add 2 million b/d to NGL capacity

By OGJ editors
HOUSTON, July 13
-- Natural gas liquids and condensate projects slated for start-up 2009-10 in some countries of the Organization of Petroleum Exporting Countries will add 2 million b/d to capacity at peak output. That’s according to the recently released Oil Market Report from the International Energy Agency. Despite the current weak market outlook, said the agency, the long-lead time expansion projects are moving forward.

Almost all the projects currently slated to come online over the next 18 months have been plagued by delays related to construction, engineering, and other technical complications as well as by a shortage of skilled labor.

Country plans
IEA data show that Middle East producers Saudi Arabia, Qatar, Iran, and the UAE will provide 90% of the increase, while Nigeria will account for the remaining 10%. “The critical need to boost natural gas output for reinjection at aging oil fields” is a primary focus for many of the projects, said the report.

In the Middle East, a shortage of gas supplies to meet rapidly rising domestic demand from the electric power sector, at desalination plants, and for industrial use has also kept expansion plans on track, if not on schedule.

-- Saudi Arabia’s capacity increases account for 34% of the growth over 2009-10, with peak capacity additions totaling 660,000 b/d. The nonassociated Hawiyah NGL recovery project will provide about half of the growth, with peak capacity of 300,000 b/d by about 2011. The project’s start-up was delayed to 2009 from 2008, said IEA.

The Khursaniyah gas processing plant has also been overwhelmed with delays; installed capacity of 290,000 b/d NGL production is not expected to be operating until yearend 2009. An additional 70,000 b/d of condensate capacity is linked to the massive 1.2-million-b/d Khurais oil field development, which formally launched last month.

It is unclear, however, when the new capacity will be fully online, given Saudi Aramco’s “challenge of adjusting its surplus crude operating capacity in the current weak demand environment,” according to the report.

-- After overcoming considerable construction and technical delays, Qatar is on track to ramp up gas liquids by a further 545,000 b/d by yearend 2010 with six projects at North field. Major capacity increments are likely from Qatargas Trains 4, 5, and 6 with a combined capacity of 460,000 b/d.

Start-up of the Al Khaleej Gas Phase 2 Project (AKG-2), being developed as part of the Ras Laffan LNG expansion project, will contribute 40,000 b/d to condensate production capacity. AKG-2 is being developed to supply natural gas to domestic markets, while associated condensate and NGLs is for export.

-- IEA says Iran plans to increase its condensate and NGL capacity by about 245,000 b/d over 2009-10. The country’s massive South Pars project has suffered delays and costly overruns, but completion of Phases 6-10 will provide most of the growth in capacity.

The gradual start-up of capacity at South Pars 6, 7, and 8 is key to the country’s enhanced oil recovery project at onshore Aghajari field, according to the IEA report. The gas-reinjection project is designed to boost output levels by about 100,000 b/d but technical issues, the field’s age, and challenging corrosive issues with the pipeline, may limit the recovery rate.

Other projects in Iran, such as the Anaran development, are on hold at present. StatoilHydro pulled out of the project earlier this year, in part due to the costly overruns the company suffered during development of Phases 6-8.

-- The UAE plans to add about 340,000 b/d of installed capacity by yearend 2010, with start-up of the delayed 270,000-b/d Habshan OGD3 processing slated for later this year.

-- Nigeria’s start-up of the Total-operated Akpo gas and condensate project will increase Nigeria’s installed capacity by a further 175,000 b/d. The Akpo development came online ahead of schedule in April.

Nigeria’s gas liquids capacity also will increase this year by production from Agbami and EA fields, brought online in second-half 2008. These fields will peak at 50,000 b/d and 40,000 b/d, respectively.

Related Articles

Shell cuts $15 billion in spending for 2015-17

01/30/2015 Royal Dutch Shell PLC has curtailed more than $15 billion in potential spending over the next 3 years, but is not “not overreacting to current low ...

Chevron’s $35 billion capital budget down 13% from last year

01/30/2015 Chevron Corp. will allocate $35 billion in its capital and exploratory investment program for 2015, including $4 billion of planned expenditures by...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

MARKET WATCH: NYMEX natural gas prices drop after storage report

01/30/2015 US natural gas closed at its lowest price in more than 2 years on the New York market Jan. 29 following the government’s weekly gas storage report,...

PwC: Low oil prices might drive surge in restructuring in 2015

01/29/2015 Mergers and acquisitions (M&A) in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to a report f...

DOE could meet 45-day LNG export decision deadline, Senate panel told

01/29/2015 The US Department of Energy would have no trouble meeting a 45-day deadline to reach a national interest determination for proposed LNG export faci...

API forms Colorado Petroleum Council, picks executive director

01/29/2015 The American Petroleum Institute has opened a Denver office that will focus on oil and gas priorities in Colorado. Tracee Bentley, who previously w...

ASMP report lists routes to shale-stimulated manufacturing rebound

01/29/2015 The US shale oil and gas renaissance has created a manufacturing rebound that could produce even more jobs and stimulate further economy growth wit...

ConocoPhillips revises down $2 billion from budget

01/29/2015 ConocoPhillips has shed an additional $2 billion from its capital expenditures for 2015, decreasing total spending to $11.5 billion from the previo...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected