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Thu 8 Mar 2007 02:28 PM

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UAE receives first Qatar pipeline gas

Dolphin Energy has received the first gas through the new $3.5bn UAE-Qatar pipeline.

The UAE's Dolphin Energy has received the first gas through a pipeline from Qatar and is testing its import facilities ahead of a commercial launch in the summer, Dolphin said in a statement on Wednesday.

The $3.5 billion pipeline is the first cross-border gas line in the Gulf Arab region. Gas demand in the United Arab Emirates is soaring due to rapid population growth and an economic and construction boom fuelled by record oil revenues.

"Gas is being received from Qatar petroleum (QP) for Dolphin's export pipeline connecting Qatar with the UAE," Dolphin said.

The statement did not say how much gas Dolphin was receiving from QP.

Doubts about the project surfaced last July when Saudi Arabia told minority partners in the project, France's Total and U.S. Occidental Petroleum, it had reservations about the pipeline.

But Dolphin said then that it had not received any objection from Saudi Arabia and it completed the sub-sea line in August.

In about two weeks after testing, the Taweelah import and distribution terminal in Abu Dhabi will begin supplying up to 400 million cubic feet per day to Dubai under a preliminary supply agreement with Qatar Petroleum.

Full commercial operations will begin in mid-summer, Dolphin said.

Dolphin aims to take up to 3.5 billion cubic feet per day of natural gas to the UAE. In 2008, the line is set to begin supplying around 200 million cubic feet a day to Oman.

Abu Dhabi government-run Mubadala Development Company owns 51% of Dolphin, while France's Total and U.S. Occidental Petroleum each hold a 24.5% stake.

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MH Q8R 12 years ago

This is indeed a good example set of Cooperation, regardless of the commercial side of it. And as per the theme of this great landmark this should quiet take care of the growing Gas needs of UAE and HOPEFULLY a very COST effective solution...I take this opportunity to post a question, Is there a plan to link GCC on RAIL network enabling more flourished trade and human transport at more cut down cost?