UAE: ADNOC Decision on Shah Pipeline in March 2010
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Thursday, 10 December 2009 |
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The JV behind the US$10 billion Shah Gas development in Abu Dhabi will
wait until March 2010 before deciding how to transport sulphur produced
at the field to export facilities at Ruwais.
According to senior sources working on the scheme, the JV of Abu
Dhabi National Oil Company and US energy major Conoco Phillips plans to
produce 1 billion cubic feet per day of sour gas from the southern Shah
Field by 2014. ADNOC has asked contractors hoping to bid on the
deal which involves building a pipeline to carry the sulphur from Shah
to Ruwais via facilities at Habshan, to resubmit their prequalification
documents by December 14th 2009 even though many fear ADNOC will scrap
the project.
The senior sources said that ADNOC planned to choose between the
pipeline and the railway before the end of 2009 but the company will
now push back its decision until March 2010. The source said that the
national oil company’s request for prequalification applications for
the pipeline contract is an attempt to gauge interest in building the
pipeline, rather than a commitment to the pipeline project.
According to a senior executive at one UAE based engineering
consultant, ADNOC's decision to commission an additional study will add
millions, if not tens of millions of dollars to the cost of the project.
PetrolWorld 091209
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