Sharjah National Oil Corporation has announced it has signed the US$40m deal with Petrofac Facilities Management International Ltd to build gas storage that Storage Terminals Magazine reported as agreed at the end of February.
The Sharjah/Petrofac deal is to build the Moveyeid Gas Storage Surface Facility Project in the United Arab Emirates. The project will include LNG storage, a compressor facility, and high-pressure pipelines leading from four Moveyeid Field gas wells to the site.
In January, oil and gas major Eni said it had also tapped into gas prospects in the Mahani exploration region, under a joint contract with Sharjah. A discovery which amounted to a gas field with the capacity to produce 50 million cubic feet a day.
There is a large demand for gas in the region and a new storage facility will assist in meeting this demand, Sharjah said in a statement. The company said it also has plans to drill for additional gas wells, which it says it will begin doing in 2023.
The project first came about after Sharjah planned to import LNG into the region, but then the company realised there was untapped domestic reserves in the region which it could extract.
Elsewhere, the company said the COVID-19 virus should not impact its projects in the region, and all developments are going ahead as scheduled at present.
Sharjah is in charge of the construction, production, operation and maintenance of Sharjah’s energy assets. Along with its Mahani gasfield, it owns and operates three two hydrocarbon liquid storage and export terminals, as well as numerous pipelines and onshore gas fields and processing facilities.
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