Oilfield sector consumes 30pc of total gas supply

TOP CONSUMER: The three-train liquefied natural gas plant operated by Oman LNG at Qalhat near Sur tops the list of consumers  -

Conrad Prabhu -

MUSCAT, JUNE 17 -

Roughly a third of Oman’s total natural gas supply was utilised in oilfield-related operations in 2016, primarily as a fuel resource and also for re-injection into oil wells as part of enhanced oil recovery (EOR) projects, according to the Ministry of Oil & Gas.

Figures published by the ministry placed the oilfield sector high on a list of major gas consumers of the year. Around 12.44 billion cubic metres (bcm) of gas, representing 30 per cent of the total supply (locally produced and imported volumes) of 40.85 bcm, was devoted to oilfield operations and related uses. In some oilfield areas, significant volumes of gas are used for generating steam necessary for thermal EOR projects.

But topping the list of consumers was the three-train liquefied natural gas (LNG) plant operated by Oman LNG at Qalhat near Sur. The company, which has long-term commitments to supply LNG to key markets in Europe and the Far East, accounted for 12.98 bcm of gas, representing 32 per cent of total supply. In its liquefied form, the gas yielded around 8.5 million tonnes of LNG in addition to some 254,000 tonnes of condensates.

Ranked third in order of demand was the nation’s burgeoning power generation and water desalination sector, accounting for 20 per cent of total gas consumption (8 bcm) in 2016. A close fourth was the heavy industrial and petrochemicals sector, distributed around Suhar, Sur and Salalah (6.8 bcm). Industrial parks administered by the Public Establishment for Industrial Estates (PEIE) consumed a mere 0.65 bcm of gas last year, representing one per cent of the total.

Of the total gas supply of 40.85 bcm recorded in 2016, Oman-based oil and gas producers accounted for 38.84 bcm, with the balance contributed by the Dolphin System. Majority government-owned oil and gas producer Petroleum Development Oman (PDO) produced the lion’s share at 38.74 bcm. Occidental Oman was a distant second with an output of 2.7 bcm. Also contributing to the total were Daleel Petroleum, Hydrocarbon Finder, Oman Oil Company Exploration & Production (OOCEP), CCED and PTTEP Oman.

Total gas reserves in the reserves were estimated at 24.79 trillion cubic feet (TCF) at the end of last year, with PDO accounting for 13.52 TCF (54 per cent) of this volume. BP Oman’s Khazzan tight gas field in Block 61 is estimated to hold 6.71 TCF of proven gas reserves, with a further 3.64 TCF of volumes confirmed as part of its Phase 2 development.