Adgas to start output from Q2

Abu Dhabi Gas Liquefaction Company (Adgas), expects to bring online fresh production from its offshore plant at Das island in the second quarter, a top company official said yesterday.

Around 85 per cent of the LNG produced at Das Island is exported to Japan's Tokyo Electric Power.

Adgas, a subsidiary of the state-owned Abu Dhabi National Oil Corporation (Adnoc), plans to commission about 211 million cubic feet per day (cfd) of gas production in the second quarter, said Hasan Al Marzooqi, Deputy General Manager of Adgas, in an interview with the Energy Exchange.

"Development is proceeding very well and we are on schedule to commission around the end of the second-quarter of this year when we will send for the first time offshore gas to onshore facilities," he said.

Adgas will operate and maintain the subsea pipeline after commissioning. Currently, the engineering procurement contracts (EPC) are managed by Gasco.

All offshore associated gas and integrated gas development (IGD) packages are in the final stages of construction with all IGD packages awarded in July last year, he said.

Adgas also ruled out any plans to increase LNG exports. "The main focus for us is to satisfy our current contractual obligation for exports and to meet the local demand of gas," he said. The global crisis pushed Adgas to speed up awarding major packages last year to take advantage of better prices, he said.

"With cheaper base costs for labour and technology and the effect of the crisis on their local economies, they can be more competitive, so we may see this as a continuing trend in the short term," he said.

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