UAE Gas Discovery ‘Hugely Significant’

(MENA) Jebal Ali Find Likely to Play Pivotal Role

The discovery of 80 trillion cubic feet of natural gas near Jebel Ali in the United Arab Emirates is likely to play a pivotal role in shaping the country’s gas market, according to analyst firm Wood Mackenzie.

The huge find was announced on the border between Abu Dhabi and Dubai and has already been ranked as the largest global gas discovery in more than a decade.

“The find ranks as the largest global gas discovery since Galkynysh (South Iolotan) ... The Turkmen field was discovered in 2005,” said Liam Yates, Wood Mackenzie Middle East upstream analyst.

Jebel Ali Project
In a joint statement the emirates of Abu Dhabi and Dubai announced plans to jointly develop the “Jebel Ali Project” to ensure sustainable growth.

“With my brother Mohammed bin Zayed, I witnessed the signing of an agreement between ADNOC and Dossab to develop one of the largest gas fields discovered between the emirates of Abu Dhabi and Dubai, with reserves of 80 trillion cubic feet (Jebel Ali Project),” said Sheikh Mohamed bin Zayed al Nahyan, Abu Dhabi Crown Prince.

The newly announced project is expected to be a major driver of breakbulk activity across the Gulf region as construction ramps up.

Clear Priority for Development

With shallower reserves than some of Abu Dhabi’s existing sour gas resources, the project is expected to deliver much lower development costs and potentially reach production much sooner.

“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,” Yates added.

National energy firm ADNOC is pushing ahead with several other major gas developments, such as the Hail and Ghasha projects as well as bolstering gas import volumes through its Dolphin Project.