Dubai Supply Authority (DUSUP) recently announced its plans to develop a floating Liquefied Natural Gas (LNG) regasification facility at the DP World Jebel Ali Terminal in Dubai. The new facility will supplement the Emirate's existing supplies of natural gas during summer peak demand, delivering environmental and security of energy supply benefits.
"Energy demand is growing rapidly in Dubai because of the strong growth of our economy. Access to the global LNG market will help Dubai to meet peak summer demand in a more sustainable way, reducing emissions and improving local air quality. Dubai will also benefit from our peak summer demand being counter-cyclical to the global winter demand peak in the LNG market," said Sheikh Ahmed bin Saeed Al Maktoum, chairman of DUSUP.
DUSUP has selected Shell as adviser and project manager for the development phase. Shell will also be the main LNG supplier and will continue to provide advice to DUSUP once the facility is completed.
Linda Cook, executive director of Royal Dutch Shell, said: "Shell is pleased to be selected by Dubai to help with this project. Dubai has many visionary projects and I think, in the field of energy, this counts amongst them. It will deliver local and global environmental benefits, and diversify Dubai's sources of energy supply."
Golar Freeze, an existing LNG ship, will be chartered by DUSUP from Golar LNG Company and converted into a Floating Storage and Regasification Unit to be moored offshore within DP World Jebel Ali Terminal. LNG ships will moor alongside the Golar Freeze to offload their cargoes. Gas will be piped through a sub-sea pipeline from the Golar Freeze into the Dubai natural gas pipeline network to industrial customers.
The regasification capacity of the Golar Freeze will be 3 million tonnes per annum, equivalent to 400 million m2 per day of natural gas.
First gas is expected during 2010. In parallel, Shell Western LNG BV and DUSUP have signed a Sales and Purchase Agreement for the short and long-term supply of LNG to be supplied from Shell's global portfolio, primarily Qatar.
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