MIDDLE EAST: Dolphin delivers gas from Qatar

Dolphin Energy said yesterday that it has begun delivering Qatari gas from its own processing plant to the UAE under the region's biggest cross-border gas project that will ensure reliable energy supplies to the burgeoning UAE economy.

Dolphin is processing gas from Qatar's North Field at its $1.6-billion plant in Ras Laffan Industrial City and then transporting it via its 364-kilometre undersea pipeline to the receiving facilities at Taweelah in Abu Dhabi.

The gas will be distributed from Taweelah to the company's customers Abu Dhabi Water and Electricity Authority, Union Water and Electricity Authority and Dubai Supply Authority. Each has signed a 25-year supply agreement with Dolphin.

Fully functional
"The entire Dolphin value chain is now functioning. We are therefore managing and supplying our own gas to our contracted customers, controlling every stage of the process," Shaikh Hamdan Bin Zayed Al Nahyan, Deputy Prime Minister of the UAE and Chairman of Dolphin Energy, said in a statement yesterday.

He said the next challenge is to ramp up the production to the targeted pipeline throughput of two billion cubic feet per day in early 2008.

The company is owned 51 per cent by the Abu Dhabi government's Mubadala Development Company and 24.5 per cent each by Total of France and Occidental Petroleum of the US. Dolphin said in June that it had produced the first gas from its wells in North Field, the world's largest gasfield.

It began testing the subsea pipeline and gas receiving facilities at Taweelah in March by bringing 400 million cubic feet per day of gas processed by Qatar Petroleum.

The arrangement was temporary until Dolphin received its own gas.
Qatar has the world's third-largest gas reserves after Russia and Iran, while the UAE ranks fourth. But the UAE's gasfield development has not kept pace with rising gas consumption, fuelled by an explosive economic growth and population increase.

Dolphin aims to transport 3.2 billion cubic feet per day of North Field gas to the UAE. The company, however, did not say how much gas it is currently supplying. Its agreement with Dubai Supply Authority is for delivering up to 700 million cubic feet of gas per day.

Oman pact
Dolphin also has a 25-year pact with Oman Oil Company to supply an average 200 million cubic feet of gas per day from early 2008.

The $3.5-billion Dolphin Gas Project links Qatar, the UAE and Oman in one of the region's biggest gas supply networks.

In January 2004, Dolphin began to supply up to 135 million cubic feet of gas per day from Oman to Union Water and Electricity Company (UWEC) in Fujairah.

The gas supplies from Oman to UWEC will be replaced by the gas from Qatar and the pipeline will be used to supply gas to Oman.
Via: GulfNews
By Shakir Husain