THE PETROLEUM EXPERIENCE oF Abu Dhabi Gas Liquefaction Company (ADGAS)

THE PETROLEUM EXPERIENCE oF  Abu Dhabi Gas Liquefaction Company (ADGAS)

The total investment in the project is estimated at some Uss 8-10 billion.  The cost of the first phase of the project is estimated at s3.5 billion(S2 billion for the upstream facilities,  and si.5 billion for the gas line and terminals in Abu Dhabi and Dubai).
     At the end of 2003,  Qatar Petroleum and DEL finalized the Dolphin Project’s field development plan in accordance with a 25-  ear development and production-sharing agreement reached in December 2001.  When the development plan has been completed(due in 2007),  DEL will produce natural gas from the North Field and process it in an offshore plant at Ras Laffan(in Qatar)  where condensate and NGL will be extracted.

Gas will then be transported through the Dolphin gas line.  During the implementation of the Dolphin Project,  DEL began concluding gas supply agreements with future buyers of Qatari gas In October 2003,  a 25-year agreement was signed between DEL and the Abu Dhabi Water and Electricity Authority(ADWEA)  committing DEL to supply the necessary quantities of Dolphin gas to four affiliates of ADWEA.  A similar agreement was signed between DEL and Union Water and Electricity Co.,  another company controlled by the emirate of Abu Dhabi.  Gas Processing Operations Besides the processing plants owned and operated by ADNOC for domestic use(e.g.,  the two natural gas processing plants Thamama F and Thamama c.  both in the Habshan area of the Bab field),  ADNOC entered into two joint ventures with foreign partners to establish major companies in the field of gas processing:  ADGAS and GASCO .

ADGAS and GASCO

      THE PETROLEUM EXPERIENCE oF  Abu Dhabi Gas Liquefaction Company(ADGAS) . ADGAs processes and exports LNG,  LPG and Pentane Plus its plant on Das lsland,  situated 160 km northwest of Abu Dhi LPG have been delivered to the Tokyo Electric Power Com Inc. (TEPCO)  When it came on stream in 1977,  it was the most complex LNG plant in the world,  with 11 gas systems incorporating a wide range of pressures and compositions.  It consists of two identical process trains in parallel,  arranged to permit safe plant overhaul of one train while the other remains in service.  The two liquefaction trains were initially designed to produce a total annual yield of 2,230,000 tons of LNG:  650,000 tons of Propane;  420,000 tons of Butane:  and 320,000 tons of Pentane Plus.  Management and Administration of ADGAS The law establishing ADGAS stipulated that the company should operate pursuant to the articles of association issued by the shareholders and that the articles should specify voting rights and the method of appointing the Board of Directors.  The Chairman of the Board of Directors is appointed by the Board from nominated by ADNOC;  the among the Vice-Chairman is designated Board from those nominated by the other shareholders (excluding ADNOC).
    The decisions of the Board of Directors are adopted by the votes of a Director or Directors nominated by ADNOC and present at the and the votes of a Director elected by one of the other shareholders.  However,  some matters usually those of particular importance require the votes of the Director or Directors nominated by ADNOC and present at the meeting,  the vote of a Director nominated by a holder of class B shares(shares held by BP or Total)  and that of a Director nominated by a holder of”class C”  shares(shares held by Mitsui Group).
  Such matters include,  inter alia[92]  the am any re terms cap the ap Gas Avai ADGAS fields of depends from the The g operated b owned percent The and add the plan ADG the ope ADGA plant.  Shareh ADGA operating each o which Form Shareh us frrom Dhab NG and company e most orating two plant he two annual 0,000 should y the nd the of the g the nated olders NOC y one se of ctors of a y BP alia:  Anu DHABI’s GAS ExPERIENCE the amendment of articles of association:  any reduction or increase in the share capital ofthe company;  terms for acquisition of borrowed funds;  capital expenditure in excess of a certain amount;  and the appointment of the General Manager Gas Availability Supply and Gathering Facilities ADGAs receives associated gas primarily from the offshore oil fields of Umm Shaif and Zakum.  he quantity of gas received depends upon the crude oil production levels of these fields.
  Gas from the Uweinat gas cap supplements this associated gas supply The gas gathering facilities for delivery of gas to the plant are operated on behalf of ADNOC by ADMA-OPCO.
   ADMA-OPCO is owned by ADNOC(60 percent),  BP(14%  percent),  CFP(13y percent)  and JoDCo(12 percent).  The original gas gathering facilities were constructed by ADMA,  d additional gas gathering facilities have been constructed since the plant was commissioned and are owned by ADNOC.  ADGAS makes payments to ADNOC and to ADMA-oPCO for the operation and use of the gas gathering facilities.  In addition,  ADGAS pays ADNOC for the supply of gas feed stock for the LNG plant.  Shareholders’  Support ADGAS is self-sufficient with respect to the conduct of its normal operations.
There are separate technical service agreements with each of the four shareholders(ADNOC,  BP,  CFP and Mitsui under which ADGAS can call for specialist technical advice and assistance.  For major technical assistance ADGAS may either call on its shareholders or look to appropriate third party specialists and/or contractors.

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