A joint venture of Abu Dhabi National Oil Co. and Occidental Petroleum Corp. plans to expand by 50% the capacity of the Al Hosn sour gas plant.
The plant is at the Shah sour gas-condensate onshore field, southwest of Abu Dhabi City, UAE.
Al Hosn began operating in 2015 and has reached full capacity of 1 bcfd. The $10-billion plant started operations earlier this year (OGJ Online, Apr. 26, 2016).
In today’s announcement, the companies did not release a cost estimate or timetable. But the expansion could become operational within the life span of ADNOC’s new 5-year business plan, which is part of the company’s 2030 Strategy.
“A key element of our 2030 strategy is to ensure we produce sufficient gas to meet our steadily increasing requirement for gas, and match rising demand from our international customers,” said Sultan Al Jaber, UAE minister of state and chief executive officer of ADNOC Group. “Sour gas will play an important role in ensuring we deliver on those commitments.”
Vicki A. Hollub, Oxy president and chief executive officer, said, “Demand for domestic gas is rising and processing additional sour gas from new and existing reservoirs makes sound business sense.”
Al Hosn produces 500 MMcfd of network gas, 4,400 tons/day of natural gas liquids, 33,000 b/d of condensates, and about 9,000 tons/day of granulated sulfur. ADNOC has a 60% share in the Al Hosn joint venture and Oxy has 40%.