Sharjah National Oil Corporation (SNOC) has signed a US$40 million deal with Petrofac Facilities Management International Ltd 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.
SNOC says there is a large demand for gas in the region and a new storage facility will assist in meeting this demand. The company also has plans to drill for additional gas wells, a process it says will begin in 2023.
The company said at present the COVID-19 virus should not impact its projects in the region, and all developments were pressing ahead as scheduled.
The project first came about after SNOC planned to import LNG into the region, but then the company realised there was untapped domestic reserves in the region which it could extract.
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 SNOC. The discovery amounted to a gas field with the capacity to produce 50 million cubic feet a day.
SNOC is in charge of the construction, production, operation and maintenance of Sharjah’s energy assets. Along with its Mahani gasfield, SNOC owns and operates three two hydrocarbon liquid storage and export terminals, as well as numerous pipelines and onshore gas fields and processing facilities.