ADNOC announces intention to expand Al Hosn Sour Gas Project

The Abu Dhabi National Oil Company, ADNOC, in partnership with Occidental Petroleum, announced today its intention to expand its Al Hosn facility, which will increase sour gas processing by 50 percent of existing capacity.

The plant could become operational within the life span of ADNOC’s new five-year business plan, part of the company’s ‘2030 Strategy’, which was recently approved by Abu Dhabi’s Supreme Petroleum Council.

Dr. Sultan bin Ahmad Sultan Al Jaber, Minister of State and CEO of the ADNOC Group, said, "A key element of our 2030 strategy is to ensure we produce sufficient gas to meet our steadily increasing requirement for gas, and match rising demand from our international customers. Sour gas will play an important role in ensuring we deliver on those commitments.

"For the first time, ADNOC has an integrated Gas Master Plan which links every part of our gas value chain. This will ensure greater efficiency and performance and enable us to maximise the value of our gas assets and pursue, smart, targeted investments to achieve our strategic objectives."

Al Hosn, one of the world’s largest plants producing sour gas, began operations in 2015 and reached its full capacity of one billion cubic feet per day in the second quarter of that year. The US$10 billion facility was inaugurated by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, in April.

Vicki Hollub, President and Chief Executive Officer of Occidental Petroleum, said, "It is good news that ADNOC is committed to expanding Al Hosn. We look forward to working on the next phase to optimise the plant’s expansion. Demand for domestic gas is rising and processing additional sour gas from new and existing reservoirs makes sound business sense.

"We have a great partnership with ADNOC. We have been able to merge our collective expertise to make Al Hosn a success story."

Out of the one billion cubic feet per day of sour gas, Al Hosn produces 500 million cubic feet per day of network gas, 4,400 tons per day of Natural Gas liquids, 33,000 barrels per day of petroleum condensates and around 9,000 tons per day of pure granulated Sulphur.

The expansion of Al Hosn would make ADNOC one of the world’s largest producers of sulphur, a by-product of the sour gas production process.

ADNOC has plans to support the development of a local sulphur products industry, including enhancing the existing ammonia and urea industry, with a new generation of advanced fertilisers.

Al Hosn is a joint venture between Abu Dhabi National Oil Company, with a 60 percent share, and Occidental Petroleum, with a 40 percent share.