ADNOC JV postpones sulphur decision at $10bn Shah

Sulphur continues to cause headaches for ADNOC JV. (Getty Images)

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Abu Dhabi National Oil Company (ADNOC) and its joint venture partner ConocoPhillips are going to postpone the decision on how to transport sulphur produced at the US$10 billion Shah Gas development in Abu Dhabi until March 2010.

Initially the JV partners had asked contractors to submit bids to build a 275km sulphur pipeline that would link Shah with process plants at Habshan and a sulphur-export terminal at Ruwais. However, due to complications regarding the construction of what would have been the world’s largest sulphur pipeline, the JV may now decide to build a rail link instead.

A source close to the project has told MEED that ADNOC and ConocoPhillips are now asking contractors to resubmit prequalification documents in an attempt to find out if companies are interested in the technically demanding project.

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In August ArabianOilandGas.com reported about the technical difficulties transporting sulphur posed. Douglas Louie, a senior process specialist with Worley Parsons explained the dangers of transport the substance for such long distances.

“The unique challenge is that sulphur will freeze if temperatures are not maintained. If sulphur should freeze in the line it may take days to weeks to thaw depending on the extent of the blockage,” Louie said.

“The design should consider backups for the heating system. The design, installation and maintenance of the pipeline insulation and jacketing are also critical. Poor or missing insulation will result in high heat losses leading to freezing in the line,’ he added.

The Shah Gas project involves the development of sour gas reservoirs within the Shah field, located onshore approximately 180 km south-west of the city of Abu Dhabi.

The project will involve several gas gathering systems, construction of processing trains to process one billion cubic feet per day gas at Shah to produce 540 million cubic feet per day of network gas, in addition to new gas and liquid pipelines and the construction of sulfur exporting facilities at Ruwais Industrial City.