عربي English Türkçe اردو فارسى
Logo
Latest News
Business

ADNOC, TOTAL Deliver 1st Unconventional Gas from UAE

Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai
Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai
TT
TT

ADNOC, TOTAL Deliver 1st Unconventional Gas from UAE

Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai
Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai

The Abu Dhabi National Oil Company, ADNOC, and TOTAL announced on Wednesday the delivery of the first unconventional gas from the UAE, Emirates News Agency reported.

The gas was delivered from the Ruwais Diyab Unconventional Gas Concession located 200 kilometers west of Abu Dhabi city, it said.

According to WAM, this achievement marks a significant milestone towards future full field development and is an important step towards ADNOC’s target of producing 1 billion standard cubic feet, scfd, of gas from the concession before 2030, ultimately enabling gas self-sufficiency for the UAE.

First gas from Ruwais Diyab comes just two years after ADNOC and TOTAL signed the region’s first historic unconventional gas concession agreement. In addition, this initial production milestone marks the first time an unconventional gas development in the Middle East delivers gas to pipeline so early in the project timeline.

The accelerated progress was made possible by the strong commitment and collaboration between ADNOC and TOTAL, enabling them to fast track the exploration of these unconventional gas resources, while tailoring operations to the UAE's shale play type.

"This achievement marks another important milestone in the development of the UAE’s unconventional gas resources as we deliver on our integrated gas strategy and work to achieve gas self-sufficiency for the nation,” said ADNOC Upstream Executive Director Yaser Saeed Almazrouei.

"The accelerated progress in Ruwais Diyab is a testament to the long-standing partnership between ADNOC and TOTAL, which has enabled us to expedite the learning curve in the production of unconventional gas resources, provided cost optimization opportunities and driven efficiencies. All of these remain key as we move forward with confidence to further develop the concession and unlock its substantial potential to drive sustainable value for the UAE and its people."

This milestone builds on ADNOC’s continuous efforts to de-risk unconventional gas resources across Abu Dhabi since 2016 and comes just over a year after Abu Dhabi’s Supreme Petroleum Council, SPC, announced the discovery of 160 trillion scf of unconventional gas recoverable resources.

The unconventional gas is delivered through a purpose-built gas pipeline and centralized early production facility in the Diyab field which enables distribution through ADNOC’s gas network. The Ruwais Diyab Unconventional Gas Concession greatly benefits from its strategic location near ADNOC’s Ruwais industrial area, providing market access and allowing operations to leverage ADNOC's expansive existing infrastructure which will continue to benefit the UAE’s evolving unconventionals industry.

Most Viewed

 
 
Business

Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
TT
TT

Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.