Construction of Dubai's $2 billion 1.8-million-cubic-metre liquefied natural gas storage facility will begin early 2008, an official said.
Dubai Multi Commodities Centre (DMCC) said last year the facility would be used as a launchpad for an LNG derivatives market, with LNG Impel, a subsidiary of Canadian firm Galveston LNG.
'The construction of the project will start early next year,' Tilak Doshi, DMCC executive director for energy, said.
The first phase of the three-stage projects would be completed by the end of 2011 and the rest is set for completion by 2013, Doshi said on the sidelines of an energy conference.
The facility would comprise nine tanks of 200,000 cubic metres each, he said. The storage hub would allow customers to store and trade LNG and also provide LNG loans and LNG quality blending.
'By the middle of this year we will have an idea of who are the bidders who will sign up for this project,' said Doshi.
DMCC is aiming to select up to 10 companies to use the envisaged facilities on a long-term basis. Usage agreements will be signed for periods of at least 10 years. DMCC launched a fuel oil futures contract on the Dubai Gold and Commodities Exchange in October.
Dubai Multi Commodities Centre (DMCC) said last year the facility would be used as a launchpad for an LNG derivatives market, with LNG Impel, a subsidiary of Canadian firm Galveston LNG.
'The construction of the project will start early next year,' Tilak Doshi, DMCC executive director for energy, said.The first phase of the three-stage projects would be completed by the end of 2011 and the rest is set for completion by 2013, Doshi said on the sidelines of an energy conference.
The facility would comprise nine tanks of 200,000 cubic metres each, he said. The storage hub would allow customers to store and trade LNG and also provide LNG loans and LNG quality blending.
'By the middle of this year we will have an idea of who are the bidders who will sign up for this project,' said Doshi.
DMCC is aiming to select up to 10 companies to use the envisaged facilities on a long-term basis. Usage agreements will be signed for periods of at least 10 years. DMCC launched a fuel oil futures contract on the Dubai Gold and Commodities Exchange in October.
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