Abu Dhabi, United Arab Emirates. Operations at the Shah gas field remained suspended on Tuesday after a drone attack, while a fresh attack caused a fire at the port of Fujairah, where oil loading by state firm ADNOC has been halted.
Attacks disrupt gas and crude export operations
Monday’s attack on the Shah field, located about 180 km southwest of Abu Dhabi, added to disruptions to the UAE’s energy sector. Shah is one of the world’s largest sour gas fields and is operated by ADNOC in a joint venture with Occidental Petroleum.
The field supplies at least 500 million cubic feet of gas daily to the domestic grid.
Fujairah loading suspension raises export concerns
A source familiar with the situation said ADNOC crude loading remains suspended at Fujairah. Fujairah has come under a series of attacks and is typically the outlet for more than 1 million barrels per day of ADNOC’s Murban crude.
Fujairah lies just outside the Strait of Hormuz and is still operating but at reduced capacity, according to Kpler.
Strait of Hormuz constraints and production impact
The UAE’s other export hubs are located within the Gulf, which has been effectively cut off from the world by Iran’s stranglehold of the Strait of Hormuz, a narrow waterway between Iran and Oman through which a fifth of the world’s oil supply normally flowed.
Reuters has reported that the No.3 OPEC producer’s daily crude output is down by more than half since the conflict broke out, with the effective closure of the strait forcing ADNOC to implement widespread production shut-ins.
Wider regional strike campaign
Gulf Arab states, including the UAE, have faced more than 2,000 missile and drone attacks since the start of the U.S.-Israeli war on Iran on Feb. 28, targeting U.S. diplomatic missions and military bases as well as oil infrastructure, ports, airports and residential and commercial buildings.
How could the continuing disruptions at Shah and Fujairah affect global crude and gas supplies?