Jebel Ali gas find ‘largest since 2005’
This morning’s announcement of an 80 trillion cubic feet (tcf) find at Jebel Ali, on the border between Abu Dhabi and Dubai is hugely significant for the United Arab Emirates.
Liam Yates, an analyst on Wood Mackenzie’s Middle East upstream team, said: “The find ranks as the largest global gas discovery since Galkynysh (South Iolotan). The Turkmen field was discovered in 2005.
“The shallow nature of the find will mean that development costs will be much lower than some of Abu Dhabi’s sour gas resources.”
He added: “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.
“In addition, ADNOC is pushing ahead with other major gas developments, such as the Hail and Ghasha project. The UAE will also need to honour its gas import commitments from the Dolphin Project.
“But longer term, the field is likely to play a pivotal role in the UAE’s gas market and could lead to additional gas exports from the country.”
Source: Wood Mackenzie