Dolphin signs pact for purchase of Omani gas

A Staff Reporter
Filed on February 7, 2003

ABU DHABI - Dolphin Energy Ltd. (DEL) has signed one of three key agreements for the purchase of Omani natural gas which will begin to flow from the fourth quarter of this year. The gas will be used by the Fujairah state owned Union Water & Electricity Company.

DEL is currently constructing a 182 kilometer, 24 inch pipeline which will link Al- Ain with Fujairah, on the UAE East Coast, in the fourth quarter of 2003. Thereafter, OOC will supply the contracted quantities of gas at the Oman-UAE border near Al Ain-from where it will flow, through the Dolphin line to UWEC's new power and desalination plant in Fujairah. Dolphin Energy 's sales and purchase agreements are for a term of 3.5 to 5 years.

Dolphin's own gas supplies from Qatar will start to flow by undersea line to the UAE in 2006 at a rate of two billion cubic feet a day, replacing the Omani gas. The border pipeline connection will then be used to supply Qatari gas to Oman as and when required.

For Dolphin Energy, Al Sayegh commented: "Further to the Memoranda of Understanding that we had earlier signed with each company, we were quickly able to finalise gas sales and purchase agreements with both UWEC and OOC. Dolphin is delighted to have been able to resolve the detailed issues involved in each case and to have signed these landmark agreements". UWEC Board Member Mohamed Saif Al Mazrouei said: "We have worked with Dolphin for many months towards this day, and we look forward to a long and constructive business relationship." "Oman Oil Company is proud to be part of the pioneering strategy for a Gulf gas grid. Our contribution in supplying natural gas to Dolphin Energy is an important first step in this process," said David Douglas, CEO of OOC.

The new Dolphin pipeline will initially provide up to 135 million cubic feet per day (mcf/d) on average of natural gas to service UWEC's forthcoming 656 MW power generation plant-and its associated 100 million gallon a day (mg/d) desalination project. Dolphin's contractors is Dodsal Ltd of India.

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