Abu Dhabi 's $10 billion Shah gas development project is on track and will be completed in late 2014, the chief executive of the project's operator said Tuesday.

Shah's installation facilities are 60% complete, while 20% of the drilling is also finished, Saif al Ghafli, CEO of Abu Dhabi Gas Development Co. , told an industry event.

Drilling risks as well as environmental and technical issues are some of the challenges the operator will have to deal with, he said.

The project, located about 180 kilometers outside Abu Dhabi , will help meet growing domestic demand in the United Arab Emirates . It is expected to produce 500 million cubic feet per day of clean gas as well as condensates, natural gas liquids and sulphur, according to Ghafli.

U.S.-based Occidental Petroleum Corp. (OXY) is the company's partner for the project.
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