SNOC Awards the UAE's Second Gas Storage Project
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SNOC Awards the UAE's Second Gas Storage Project

SNOC Awards the UAE's Second Gas Storage Project

On March 24, 2020, Sharjah National Oil Corporation (SNOC), announced that its Moveyeid Gas Storage Surface Facility Project has been awarded to Petrofac Facilities Management International Limited.

The project comprises a new high-pressure compressor facility, a high-pressure pipeline and flow lines to four existing wells in Moveyeid Field. The contract value of Petrofac’s scope of work is $40 million. The additional project scope also includes drilling horizontal legs in existing wells, and potentially drilling new wells in 2023.

3-D Model Attribute: The design of the new high-pressure compressor facility of Moveyeid Gas Storage Project

3-D Model Attribute: The design of the new high-pressure compressor facility of Moveyeid Gas Storage Project

A gas storage pilot test has been in progress since 2017 with the purpose to prove the concept of the project and to optimize the final project design. SNOC plans to implement the project in phases, with the surface facilities to be commissioned by the end of 2020 and drilling in 2023.

SNOC will also continue to evaluate the need for expanding the storage and delivery capacity of the project beyond 2023.

“Gas storage has been on the Sajaa Asset agenda since 2003. SNOC owns the ideal reservoir for such a project in terms of size, proximity to pipeline infrastructure, connectivity, and composition. However, the historic chronic shortage of gas to provide the cushion gas prevented the project from becoming a reality at that time,” said Hatem Al Mosa, CEO of SNOC. “The project will allow us to store excess gas in the winter to satisfy the summer peak demand. It will also provide a readily available strategic reserve to respond to unexpected operational or market issues where connectivity and proximity become most critical.”

Earlier this year, SNOC and its partner Eni, announced a successful new discovery of natural gas and condensate onshore in Sharjah. The discovery, named ‘Mahani’, comes within the first year of the partnership and represents the first onshore discovery of gas in the Emirate since the early 1980s.

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