Dolphin awards $200mn pipeline deal

PIPE DEAL: Dolphin awards contract to supply line material for pipeline linking UAE coasts. (Getty Images)

Dolphin Energy has awarded a $200 million deal for the supply of line pipe to build its new pipeline linking the east and west coasts of the UAE, the company said on Sunday.

Dolphin said German firm Salzgitter Mannesmann International had won the contract and would manufacture some 120,000 tonnes of line pipe to be delivered between summer 2008 and spring 2009.

The 240-kilometre pipeline will link Dolphin’s gas receiving facilities at Taweelah on the coast of Abu Dhabi with the Abu Dhabi Water and Electricity Authority (Adwea) power and water desalination plant in Fujairah.

Dolphin, a joint venture between Mubadala Development Company, France's Total and US firm Occidental, supplies gas to the UAE and Oman from Qatar’s giant North Field via a 364-kilometre pipeline linking the two countries.

Dolphin began using the pipeline in March to bring 400 million cubic feet per day (cfd) of gas processed by state-owned Qatar Petroleum to Dubai. Dubai will be taking between 600 million and 800 million cfd once full exports begin.

Dolphin produced first gas from its own facilities at Qatar's giant North Field in June. The company has contracts to supply Adwea, the Union Water and Electricity Authority, Dubai Supply Authority and from next year the Oman Oil Company.

Dolphin also said bids for the design and construction of the Abu Dhabi-Fujairah pipeline are due by January 31.

It said nine contracting companies were invited to bid in November and the contractor will be appointed before summer, with site work due to begin shortly thereafter.

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