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25 March 2020
INVESTMENT

Sharjah’s SNOC awards $40 million gas storage project to Petrofac

Sharjah National Oil Corporation will also continue to evaluate the need for expanding the storage and delivery capacity of the project beyond 2023

SNOC plans to implement the project in phases, with the surface facilities to be commissioned by the end of 2020/Bloomberg

by Kudakwashe Muzoriwa

Sharjah National Oil Corporation (SNOC) has awarded Petrofac Facilities Management International a $40 million contract to develop the Moveyeid Gas Storage Surface Facility Project.

The project comprises a new high-pressure compressor facility, a high-pressure pipeline and flow lines to four existing wells in Moveyeid Field. The additional project scope also includes drilling horizontal legs in existing wells, and potentially drilling new wells in 2023.

The state-owned oil firm said that a gas storage pilot test has been in progress since 2017 with the purpose to prove the concept of the project and to optimise 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.

Hatem Al Mosa, the CEO of SNOC, said, “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.”

The development follows SNOC and Eni’s new discovery of natural gas and condensate onshore in Sharjah earlier this year. The discovery, named ‘Mahani’, comes within the first year of a partnership between the two companies and represents the first onshore discovery of gas in Sharjah since the early 1980’s.


RELATED STORIES: Sharjah National Oil Corporation Petrofac

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