By Safura Rahimi and Reuters
The two companies agree to invest in natural gas projects as they expand operations.
United Arab Emirates-based Dana Gas and Arab Petroleum Investments Corporation (APICORP) have agreed to make joint investments in natural gas projects, Dana said on Sunday.
Saudi-based APICORP, owned by 10 states of the Organisation of Arab Petroleum Exporting Countries, will contribute equity, financing and advisory service to the projects, it said.
Dana and APICORP are already working on a natural gas liquids processing plant in Egypt.
Dana Gas announced plans to expand its gas operations and investments in Egypt’s growing natural gas industry earlier this month. The company is currently the 6
highest gas producer in Egypt and the 9
highest oil and gas producer through the activities of its exploration and productions division, Centurion Energy.
Dana Gas was set up to distribute gas imported from Iran. Earlier this month Iran’s oil minister, Kazem Vaziri-Hamaneh said
will not export gas to the UAE
until it secures a higher price. With imports from Iran stalled due to the pricing dispute, Dana has been expanding in other markets.
The United Arab Emirates needs the gas to meet rapidly rising domestic demand from industry and power plants.
Dana signed an agreement with Iraq's Kurdish regional government in April to evaluate development of the region's gas reserves. Dana also won a $400 million service contract from the regional authority to process and pump gas from the Khor Mor field for supply to power plants.
In January it completed a $1.06 billion acquisition of Centurion Energy International Inc, a Canadian company with development leases and exploration licenses in Egypt, Tunisia, and offshore West Africa.