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Wed 9 Jun 2010 08:08 PM

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ADNOC to award Shah sulphur contracts soon

Sulphur granulation facility to be located in Habshan, approx 5km from main plant.

ADNOC to award Shah sulphur contracts soon
TREATMENT PLANT: State run ADNOC said that it will soon award contracts to build a sulphur treatment plant at its $10bn Shah sour gas development. (Getty Images)

State run Abu Dhabi National Oil Company (ADNOC) will soon award contracts to build a sulphur treatment plant at its $10 billion Shah sour gas development, industry sources said on Wednesday.

The plant would produce 20,000 tonnes per day of sulphur granules from gas produced from the Shah field, the first development of a sour gas field in the UAE.

The UAE is short of gas and is moving ahead with the Shah field development despite the withdrawal of its partner for the project, ConocoPhillips in late April.

Speaking to Reuters on Wednesday, one source working on the project said: "The engineering, procurement and construction contract will be awarded soon."

The sulphur granulation facility would be located in Habshan, approximately 5 km from the main process plant in Shah.

Liquid sulphur extracted from Shah's raw gas would be piped to the plant through two sulphur pipelines. The plant would granulate the sulphur for transport by rail to a marine export terminal at Ruwais.

The UAE's Union Railway would build a 264 km branch linking the Shah sulphur facility to the 1,100 km network it is planning in the Gulf Arab state.

ADNOC had initially decided to build a sulphur pipeline to Ruwais, but decided to replace the pipeline with a railway due to the technical challenges of the initial plan.

Shah would pump around 1 billion cubic feet per day (cfd) of raw gas, which after processing would give 540 million cfd of gas fit for consumption.

The UAE is the world's third-largest oil exporter and has the world's fifth largest gas reserves, much of it sour or with a high sulphur content.

Australia's Worley Parsons is conducting the front-end engineering and design (FEED) for the sulphur granulation facility.

The gas at Shah has a content of around 30 percent of deadly hydrogen sulphide, making it tougher to process than more conventional gas reserves. (Reuters)

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