The offshore block consists of three fields –Belbazem, Umm Al Salsal and Umm Al Dholou.
Adnoc has the majority 60 per cent stake in Al Yasat, with the remainder held by China’s CNPC. NPCC was selected after a rigorous tender process that ensures it will deploy best-in-class technology and expertise to execute this strategic project, with a substantial part of the award value flowing back into the UAE’s economy, said Yaser Almazrouei, Adnoc upstream executive director said in a statement on Tuesday.
Around 65 per cent of the award value will flow back to the UAE, according to Adnoc s in-country value programme.
Adnoc, which produces and sells oil on behalf of the UAE, Opec s third-largest producer, has been looking to develop its gas resources.
The company has the potential to produce 11 billion cubic feet per day of natural gas and over 1 billion cf/d of sour gas. A significant proportion of gas fields in Abu Dhabi are sour, a term that refers to the presence of sulphurous compounds in the gas.
The national oil company is also the main provider of natural gas to industries in the UAE, accounting for more than two-thirds of supply.
“This agreement will ensure the security of supply and cost of natural gas to our plants, and demonstrates Adnoc s continued support of the UAE’s industrial sector, said Emirates Steel chief executive Saeed Al Remeithi.
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Abu Dhabi National Oil Company will develop a massive blue ammonia project at its downstream hub in Ruwais, as it looks to grow the UAE s hydrogen economy.
The company is advancing the design phase of the planned facility at the Ta ziz industrial ecosystem, which is being developed with ADQ at Ruwais.
The facility will have a capacity to produce 1,000 kilotonnes of ammonia per year, Adnoc said in a statement on Monday.
Blue ammonia is a more easily transportable fuel source made from blue hydrogen, which is itself produced as a byproduct of carbon dioxide that has been captured and stored. The blue aspect of the product refers to the hydrogen derived from natural gas feedstocks.
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Abu Dhabi National Oil Company announced the development of a 1,000-kilotonne blue ammonia facility at its downstream industrial hub of Ruwais on Monday.
But what is blue ammonia and what role does it have in the UAE s rapidly-evolving hydrogen strategy?
What is ammonia?
Ammonia is a chemical compound that is important to the global fertiliser industry. It consists of nitrogen and hydrogen and is formed with one molecule of the former and three of the latter.
Apart from fertilisers, ammonia has a variety of other uses - in pharmaceuticals, textiles, cleaning products and for wastewater treatment. The production of ammonia is a lucrative market valued at $72.8 billion last year, according to the Ammonia Market 2021 report.
The commodity sector traded lower for a second week and, following the April surge, the market was increasingly at risk of a correction. The setback was led by the oil sector. which traded lower in anticipation of increased supplies from Iran, given progress on lifting sanctions, Ole Hansen, head of commodity strategy at Denmark s Saxo Bank.
Talks between the US and Iran, which have been ongoing for weeks, hit a stumbling block on Sunday after Iran s parliament speaker said that international inspectors may no longer access surveillance images of the country’s nuclear sites after a deadline to agree a new deal was not met.