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Thu 25 Jul 2013 01:05 PM

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Aramco plans new gas plant at Fadhili

State oil giant's new gas plant will have a processing capacity of 1bn standard cubic ft per day

Aramco plans new gas plant at Fadhili
Workers with Raven Drilling line up pipe while drilling for oil in the Bakken shale formation on July 23, 2013 outside Watford City, North Dakota. North Dakota is been experiencing an oil boom in recent years, due in part to new drilling techniques including hydrolic fracturing and horizontal drilling. In April 2013, The United States Geological Survey released a new study estimating the Bakken formation and surrounding oil fields could yield up to 7.4 billion barrels of oil, doubling their estimate of 2008, which was stated at 3.65 billion barrels of oil. If youre not working out here, theres no excuses. I went to prison for six years - it doesnt matter what your past is, Allyn said. (Getty Images)

State oil giant Saudi Aramco plans to build a new gas plant at al-Fadhili oilfield, which will have a processing capacity of 1 billion standard cubic feet per day of sour gas, three industry sources said.

Aramco has stepped up its search for gas to boost production that will help meet rising domestic fuel demand. It completed in 2012 the Karan gas project, the kingdom's first gas field to be developed which was not associated with an oil field.

The new plant will process gas coming from two fields; Khursaniyah and Hasbah.

Aramco already has oil and gas processing facilities in Khursaniyah, while Hasbah is one of the two non-associated offshore gas fields that will feed gas to the Wasit project which is currently under development.

The Fadhili plant, which is scheduled to be operational in 2018, will be able to deliver 520 million scfd of gas to the market, the sources said.

Aramco has already invited companies to bid for design and management contracts for the Fadhili project. The due date for bids are Aug. 4.

Saudi Aramco referred Reuters to the oil ministry which was not available for comment on the gas project.

The gas in Hasbah contains high levels of hydrogen sulphide, nitrogen and CO2. Gas with high levels of sulphur - also called sour gas - is tougher to process than other natural gas reserves.

Aramco said in its recently-issued 2012 Annual Review its exploration and appraisal efforts for unconventional gas continue and cited three areas; the Northwest of the kingdom, the Southern part of Ghawar, the world's largest onshore oilfield and in the Rub al-Khali, known as the Empty Quarter.

"A new onshore sour gas processing facility in the Fadhili and Khursaniyah area has the further advantage of opening up new opportunities to tap into the large undeveloped deep but sour gas reservoirs of Khursaniyah," said Sadad al-Husseini, a former top executive at Aramco and now president of Husseini Energy, an independent consulting firm.

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