The United Arab Emirates has suspended operations at a significant natural gas field in Abu Dhabi following the first direct attack on a production site in the country. Recent reports indicate that Iran is intensifying its drone strike campaign against energy hubs in the Gulf region. This escalation has raised concerns both among citizens in the UAE and globally about the potential impact on oil prices and other natural resources.
Several media reports from Abu Dhabi claim that Abu Dhabi authorities and relevant response teams have contained and brought under control a fire that broke out at the Shah gas field, caused by a drone attack.
An official at Abu Dhabi Media Office revealed, “Operations at the facility have been suspended while damage is assessed, and no injuries have been reported.” During the past four days, Fujairah has already suspended loadings several times. This is because the port has already faced several attacks.
As reported by The National, the Shah gas plant in Abu Dhabi accounts for about 20% of the UAE’s total gas supply. It also accounts for about 5% of the world's granulated sulfur.
The Shah gas field is operated by ADNOC Sour Gas. The ADNOC Sour gas is a joint venture of Abu Dhabi’s national oil company, ADNOC, and U.S. firm Occidental Petroleum. ADNOC holds about 60% share, and the US firm holds a 40% share. This collaborative initiative was established in 2010. The aim was to increase the value of the Shah Gas Field, as it has the capacity to produce more than 1 billion cubic feet of sour gas per day.
The ongoing disruption in the gas field adds to the intermittent suspension of oil loading at the Fujairah oil port in the UAE. At present, Fujairah is the only export terminal in the Emirates located outside the Strait of Hormuz.
Also read: Breaking: UAE’s Fujairah Oil Port Suspends Operations Again After Drone Attack