Sharjah National Oil Corporation Completes Second Phase Of Gas Storage Project To Enhance Energy Security

Sharjah National Oil Corporation (SNOC) has successfully wrapped up the second phase of its underground gas storage initiative at the Moveyeid field. This project, which began in 2017 with a pilot phase, expanded to handle larger gas volumes by January 2021. The completion marks SNOC's entry into a new business domain, aiming to balance Sharjah's gas supply and demand, crucial for the power sector.

The second phase of this project was executed with world-class technical and safety standards. It included Underbalanced Coil Tubing Drilling (UBCTD) well simulations. This technique involves drilling horizontal legs in existing wells, improving reservoir access. As a result, well performance has significantly improved while reducing injection pressure requirements, leading to notable cost savings.

Hatem Al Mosa, CEO of SNOC, stated, "The completion of this project is an outstanding achievement considering the local and international supply chain challenges we met during and after the COVID-19 pandemic. It was completed without any operational, safety or environmental incidents."

The newly designed surface and subsurface infrastructures are optimized for efficiency and future growth. These enhancements support potential expansion plans that could quadruple current capacity. This development aims to serve not only Sharjah but potentially the entire UAE.

Al Mosa further commented on the project's significance: "The timely launch of this project is a major new business development activity for SNOC. It will allow us to store excess gas in the winter to satisfy the UAE’s summer peak electricity demand as well as provide a readily available strategic reserve for energy security allowing us to respond to unexpected operational or market challenges."

This strategic reserve will enable SNOC to address unforeseen operational or market issues effectively. By storing surplus gas during winter months, it ensures readiness for peak electricity demands in summer across the UAE.

With inputs from WAM