PROJECT UPDATE: OGD-3/AGD-2: The return of the mega gas project

11 October 2004
The OGD-3/AGD-2 project ranks as the biggest investment ever undertaken in Abu Dhabi's onshore gas sector. With a price tag of about $3,000 million, the integrated gas recycling programme will significantly enhance the emirate's position in the liquefied petroleum gas (LPG) market, drive new petrochemical development at Ruwais and address falling reservoir pressure in onshore oil fields.

The multi-billion dollar programme is divided into two main components. OGD-3 is similar in scope to phase 2 of the onshore gas development (OGD) programme and involves the processing of an additional 1,300 million cubic feet a day (cf/d) of Thamama F gas in the Bab field to produce condensates, LPG and ethane for export, with the residue gas being reinjected into oil field reservoirs. Phase 2 of the Asab gas development (AGD-2) calls for the expansion of the Thamama F and G gas recycling project, commissioned in 2000, through the introduction of a natural gas liquids (NGL) recovery capability. On both schemes, the NGL produced will be delivered via pipeline to Ruwais, where a third NGL train with capacity of 24,000 tonnes a day (t/d) will be built at the existing fractionation plant.

The three principal players in the emirate's onshore sector are overseeing the project, which has been divided into five separate engineering, procurement and construction (EPC) packages. Much of the responsibility rests with Abu Dhabi Gas Industries Company (Gasco), which is managing the three biggest packages: the OGD-3 Habshan works; the AGD-2 NGL recovery facilities; and the expansion of the Ruwais fractionation plant. Abu Dhabi Company for Onshore Oil Operations (Adco) is looking after the OGD-3 gas gathering network package, and Abu Dhabi Oil Refining Company (Takreer), the condensate storage work at Ruwais.

All five packages are now out to tender, with awards expected over the coming six months. Commissioning of the entire project is scheduled for early 2008.

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