JEBEL ALI BECOMES THE LARGEST GAS DISCOVERY IN 15 YEARS

February 05, 2020

Jebel Ali, the UAE’s recent discovery of 80 trillion cubic feet of shallow gas reserves in an area straddling the emirates of Abu Dhabi and Dubai is the biggest find in 15 years, analysts said.
“The find ranks as the largest global gas discovery since Galkynysh [South Yolotan],” said Liam Yates, Middle East upstream analyst at Wood Mackenzie.
The Turkmen gasfield – the world’s second-largest – was discovered in 2005 and is estimated to hold about 500 trillion cf of gas.
“A discovery of this scale will be a clear priority for development, but the timing will be dependent on where it fits into the UAE’s gas market. Large volumes of gas are associated with oil production, which is on the rise” Mr Yates said.
On Sunday, state-owned Adnoc and the Dubai Supply Authority signed an agreement to explore the resources jointly.
Around 10 exploration and appraisal wells were drilled by Adnoc in its first-ever exploration in Dubai over 5,000 square kilometres of land between Saih As Sidirah and Jebel Ali.
Shallow gas refers to organic gas found in relatively shallow depths below the ground’s surface. The shallow nature of the resource will also ensure that the development costs of gas production will be lower than unlocking Abu Dhabi’s sour gas caps, Mr Yates said.
Sour gas refers to gas reserves containing significant volumes of sulphur. Much of the gas in Abu Dhabi is sour, with Adnoc spending billions of dollars developing gas reserves previously deemed uneconomical, especially in Hail and Ghasha, alongside foreign partners.
(Source: thenational.ae/Wood Mackenzie – Image: drilling the jebel Ali reservoir/ADNOC)