Dolphin to start supply of gas to Oman next month

Dolphin Energy said yesterday it would begin supplying Qatari gas to Oman through the UAE in October under a 25-year contract.

Dolphin, the largest cross-border gas pipeline venture in the Middle East, said supplies to Oman include an average 200 million cubic feet of natural gas per day in line with an agreement signed with the Oman Oil Company in September 2005.

"Dolphin Energy Ltd will supply gas to Oman during October 2008, as soon as Oman is ready to receive it," Dolphin said in a statement.

It said the gas would be delivered through Dolphin's Eastern Gas Distribution System (EGDS), via a hook-up near Al Ain. The agreement is valid for a period of 25 years, commencing no later than October 31.

The gas will arrive in Oman after flowing through Dolphin's export pipeline from Qatar, monitored on arrival at its receiving facilities in Taweelah, Abu Dhabi, before its cross-country journey via the EGDS.

"Our supply, pipeline and monitoring systems are ready to begin supplying gas as soon as Oman's new compression systems are tested and on line," said Dolphin's General-Manager for UAE, Ibrahim Ahmed Al Ansari.

In press comments last month, Oman's Oil Minister Mohammed bin Hamad Al Rumhi said the project is progressing smoothly and there were no obstacles facing the timely supply of natural gas to Oman.

He said supplies from Qatar would complement gas produced in Oman but added the Gulf country is expected to need more gas in the future.

"Oman is planning to develop its industrial sector and diversify energy sources, so there will be a need for more gas supplies in the future. The size of additional supplies will depend on the development plans in our industrial sector and in electricity generation," Al Rumhi said, without specifying the whether extra gas supplies would also be imported from Qatar. "The gas supplies will arrive in the port of Sohar, where we are building large projects, including fertilisers, power general, water desalination, oil refinery, aluminium smelter and other industries, which need gas as the main fuel. But as I have said, the Qatari gas will complement gas produced in Oman. We are pinning high hopes on such supplies and I don't think there are obstacles facing that project on both sides of the border."

The Dolphin project, which was launched nearly eight years ago, involved the construction of a 364km subsea pipeline that traversed the Arabian Gulf across the shores of Qatar, Saudi Arabia and the UAE.