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UAE & OMAN Sign First GCC Gas Pipeline Accord
Agreement Confirms Dolphin Energy Role as Owner and Operator of Al Ain – Fujairah Pipeline
The UAE and Omani Governments today signed a Pipeline Agreement to regulate the transmission of natural gas between the two countries – and to confirm Dolphin Energy Limited as owner and operator of the new gas pipeline connecting Oman with Fujairah.
This accord signifies the first occasion that a cross-border gas transmission agreement has been signed between GCC nations, and strengthens the economic relations between the two countries.
The IPA was signed in Abu Dhabi by His Highness Sheikh Hamdan Bin ZayedAl Nahayan, Deputy Prime Minister and Minister of State for Foreign Affairs of the UAE and Chairman of Dolphin Energy Limited, on behalf of the Government of the United Arab Emirates, and by HE Maqbool bin Ali Sultan, Minister of Commerce and Industry of the Sultanate of Oman and Chairman of Oman Oil Company.
In January 2004, Dolphin Energy began to supply up to 135 million cubic feet of gas per day from Oman to the Union Water & Electricity Company (UWEC) in Fujairah. This gas is the main energy source for UWEC’s 656 MW power station and 100 million gallons a day (mg/d) desalination plant.
In order to meet UWEC’s requirements, Dolphin has constructed a 182 kilometer, 24-inch pipeline which crosses desert and mountainous areas belonging to both Oman and the UAE. This connects the border “tie-in” with Oman’s gas pipeline near Al Ain, to Qidfa on the East Coast.
The gas supplies from Oman to UWEC will subsequently be replaced by Dolphin gas from Qatar – and the border connection can thereafter be used to supply Qatari gas to Oman, as and when required.
Today’s International Pipeline Agreement establishes a Joint Oman-UAE Pipeline Commission to oversee the document’s implementation, and also establishes the necessary mechanisms for supervision of its construction and operation by Dolphin Energy.
The benefits of the Dolphin pipeline for UWEC, and thus for the UAE, are expected to be considerable. UWEC will supply much-needed fresh water to the Northern Emirates, to Dhaid in Sharjah and to Sweihan in Abu Dhabi – as well as providing up to 500 MW of power to the Federal Electricity & Water Authority (FEWA).
Dolphin Energy Limited
Dolphin Energy Limited was created to develop substantial energy projects throughout the GCC. Its objective is to create long-term economic wealth and new business opportunities for GCC citizens, far into the future. Dolphin Energy’s major strategic initiative, the Dolphin Project, involves the production and processing of natural gas from Qatar’s North Field, and transportation of the dry gas by sub-sea pipeline across joint UAE-Qatari waters to the UAE, beginning in 2006.
Dolphin Energy’s first initiative, the Al Ain to Fujairah Pipeline, came on stream in January 2004.The pipeline supplies the Fujairah Water and Power Plant on the UAE’s East Coast – initially with natural gas from Oman, and subsequently with Dolphin gas from Qatar. In May 2005, Dolphin began to supply natural gas to the UAE Emirate of Ras Al Khaimah. The gas is being delivered via a tie-in near Qidfa between Dolphin’s Al Ain - Fujairah pipeline and the existing Emarat gas pipeline network.
Dolphin Energy is owned 51 percent by Mubadala Development Company, on behalf of the Government of Abu Dhabi – and 24.5 percent each by Total of France and Occidental Petroleum of the USA.
Detailed information about Dolphin Energy can be found on www.dolphinenergy.com
For further information contact:
Mirna Hijazi
Corporate Communications Manager
Tel +971 2 6995500
Fax +971 2 6995578