The Abu Dhabi National Oil Company (Adnoc), run on behalf of the UAE Government, is experiencing a change in its traditional role with the establishment of the Dolphin project.

With proven recoverable reserves estimated at 5.8 billion cubic meters or four per cent of the world total, the UAE possesses the third largest natural gas reserves in the region and the fourth largest in the world.

It is Adnoc that has been responsible for harnessing this capacity over the past decade, mainly to meet rising demand for oil field reinjection and power generation.

In the scheme of things however, the development of Abu Dhabi's massive gas reserves has not been high on Supreme Petroleum Council's (SPC) agenda. Adnoc has largely treated gas as an offshoot of oil production, which is not surprising, given that most of its reserves are in the form of associated gas.

However Adnoc is experiencing a change in its traditional role with the establishment of Dolphin Energy (DEL), the $3,500 million venture planning to import up to 3,000 million cubic feet per day of Qatari gas into the UAE from 2006.

The setting up of DEL necessitated the issue in late May of an Amiri decree by SPC's chairman, and Crown Prince of Abu Dhabi, Shaikh Khalifa bin Zayed Al Nahyan to clarify the responsibilities of the two bodies.

Under this, DEL would be the exclusive importer of gas in the emirate and would meet the feedstock needs of Abu Dhabi Water & Electricity Authority (Adwea) and its installations throughout the emirate except for the western region. This is to remain in Adnoc's charge.

DEL will also be responsible for upping gas volumes that are supplied to Dubai - currently stand at 500 million cu ft per day to 800 million cu ft per day.

"Dolphin is the first cross border project of this magnitude,'' said Khaldoon Al Mubarak, executive vice president, Corporate Development of DEL.

The initial phase of the project involves offshore field development, gas processing and transportation by pipeline of two billion cu ft per day of processed "sweet" gas from Qatar's North Field, via an offshore riser platform, to landfalls at Taweelah in Abu Dhabi and Jebel Ali Free Zone in Dubai.

Companies have been invited by DEL to submit bids this month for a contract to supply and install compressor units and gas turbines at Ras Laffan.

For Adnoc, this means that it can focus its gas business on meeting the rising requirements for oil field reinjection.

The biggest upstream investment is planned by Abu Dhabi Gas Industries Company (Gasco), a company of which Adnoc is a major shareholder and is an example of Adnoc's new found role.

The company is pressing ahead with the third phase of the onshore gas development (OGD-3) and phase 2 of Asab gas development (AGD-2).

The estimated $2,500 million project involves the recovery of condensate and natural gas liquids (NGL) and reinjection of gas to maintain pressure in the Thamama reservoirs.

The scheme will not yield any dry gas for domestic or industrial consumption. The US' Bechtel was awarded in May a 14-month front-end engineering and design (FEED) package which it is expected to complete by mid 2003.

In the downstream sector, Adnoc plans to pursue its plans to add a new LPG train at Das island.

This project, along with the proposed debottlenecking of the two 140,000 barrels per day (bpd) condensate trains at Ruwais, will involve an investment of $350 million for the company.

Overrall, downstream activities have been scaled back because of slim margins in setting up greenfield projects.

Meanwhile, companies have been invited by Gasco to submit technical bids for the contract to increase gas supplies through the Abu Dhabi-Jebel Ali pipeline.

A provisional deadline of November 12 has been set for the return of bids. The engineering, procurement and construction (EPC) contract will include the supply and installation of a booster compressor unit at Habshan in Abu Dhabi emirate and modifications to the gathering units at Maqta and the Jebel Ali gas receiving stations.

Estimated to cost $15 million-20 million, construction work on the project is anticipated to require 14-16 months.

Tebodin Middle East, a subsidiary of Tebodin of the Netherlands, carried out the FEED work for the project which will form part of Gasco's second-phase programme to increase gas supplies to Dubai to 800 million cu ft per day from 550 million cu ft per day.

The additional gas will be used for the running of power generation at Dubai Electricity & Water Authority's (Dewa) units in Jebel Ali. Bids are due to be returned for the first-phase contract on Dewa's next co-generation plant - the Jebel Ali L station - which will have capacity of 650-700 MW and 70 million gallons per day.

Plans are more advanced at Abu Dhabi Gas Liquefaction Company (Adgas) for a new LPG train at Das island. Japan's Chiyoda Corporation is expected to complete the FEED package by the autumn, allowing for the EPC tender to be issued by year-end.

The $200 million-300 million expansion will involve the installation of a new one million-tonne-per-year LPG unit.

Meanwhile, in Bu Hasa, a new degasification plant with a capacity of 730,000 bpd has been added. The project will include the replacement of existing two-phase separators with new three-phase separators, and upgrade of the integrated control systems, oil drainage facilities, and the effluent water disposal units.

Managed by Abu Dhabi Company for Onshore Oil Operations (Adco), the infrastructure upgrade, it is hoped, will effectively tackle increasing water cuts and falling reservoir pressure.

Offshore, an estimated $1,200 million gas injection project is planned by Abu Dhabi Marine Operating Company (Adma-Opco) at the Umm Shaif field. The scheme, which calls for the reinjection of some 600 million cu ft per day of gas, is only waiting for the appointment of a FEED contractor.