Initial Dolphin Gas Supplies Received in Al Ain Through Oman Pipeline Link

Source: 1/24/2004, Location: Middle East

GCC’s First-Ever Cross Border Transmission Heralds Regional Gas Grid
Abu Dhabi, Saturday January 24, 2004 – Dolphin Energy Limited announced today that the company’s first supplies of natural gas from Oman had been safely received by pipeline at its control station in Al Ain – the first ever cross-border gas transmission in the history of the GCC.

Over the next two days, (note to editors – through January 26, 2004) Dolphin will transport the gas through its recently completed, 24-inch,182-kilometer gas pipeline to a new power and desalination plant in Fujairah.

The plant, owned by Union Water & Electricity Company (UWEC), will henceforth receive some 135 million cubic feet of gas every day from Dolphin – once the pipeline commissioning process is complete. The gas will be the initial energy feedstock for UWEC’s 656 MW power station and 100 million gallons a day (mg/d) desalination plant.

Dolphin Energy CEO, Ahmed Ali Al Sayegh, said today: “Dolphin is now in business. This is a historic moment, since it marks our first gas supplies to a customer, as well as the first gas transmission across GCC national borders.

“Dolphin is proud to have contributed to this occasion, and we are particularly grateful to the Oman Government for their encouragement and support. We could not have undertaken this strategic energy initiative without them.”

Saeed Al Mazrooei, Dolphin’s Deputy VP Projects, added: “The Omani authorities and Oman Oil Company (OOC) have helped us at every turn – to ensure that we received our gas on time, of the right quality and at the right place. We look forward to a long working relationship.”

Last year, on February 6, 2003, Dolphin Energy signed a sales agreement with OOC to provide it with gas for Fujairah for a term of between 3.5 and 5 years. On the following day, Dolphin signed a sales agreement to supply UWEC for the same period.

Dolphin’s gas supplies from Oman to UWEC will subsequently be replaced by Dolphin gas from Qatar. The border connection will thereafter be used to supply Qatari gas to Oman, as and when required.

The benefits of the Dolphin pipeline for UWEC, and thus for the UAE, are expected to be considerable. UWEC will supply badly-needed water to the Northern Emirates, to Dhaid in Sharjah and to Sweihan in Abu Dhabi – as well as providing up to 500 MW of power to the Federal Water & Electricity Authority (FEWA).

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