The UAE will start pumping Qatari gas into Oman within three months as a cross-border pipeline is nearly completed, Oman's Oil Minister said yesterday.
Mohammed bin Hamad Al Rumhi said the project is progressing smoothly and there were no obstacles facing the timely supply of natural gas through the Dolphin pipeline from Qatar's gigantic offshore North Field.
"Qatari gas is scheduled to arrive in Oman through the Dolphin pipeline network within three months," he told the Qatar's newspaper Al Sharq.
"Preparations are under way to complete construction work on both sides of the UAE and Omani borders at Buraimi area… the project has entered its final phase ahead of the trial commissioning of the facilities."
Rumhi said Oman had contracted to buy 5.6 million cubic metres per day of gas, which will be supplied to the fast growing Sohar industrial city, the hub of Oman's non-oil manufacturing activities and its economic diversification plans. He noted that 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," the minister said, without specifying the whether extra gas supplies would also be imported from Qatar.
The Dolphin project, which was launched nearly eight years ago, involved the construction of a 364-km sub-sea pipeline that traversed the Gulf sea across the shores of Qatar, Saudi Arabia and the UAE.
Gas began flowing into Taweelah just outside Abu Dhabi city last year at a rate of 1.6 billion cubic feet and supplies are expected to surge to two bcfd this year.
Besides Oman, they include 788 million cubic feet per day for the Abu Dhabi Water and Electricity Authority, 730 mmsf/d for Dubai Supply Authority and around 141 mmsf/d for the Union Water and Electricity Company.
The UAE has the world's fifth largest gas deposits but most of them are sour gas and associated with oil, making their separation a costly process. Abu Dhabi, however, is investing billions to develop its sour gas deposits to narrow a widening supply shortage, estimated at 1.5 billion cubic feet per day.
In recent press comments, Dolphin CEO Ahmed Al Sayegh said the company is negotiating with Qatar for a possible expansion of natural gas supplies in the future to meet an expected increase in demand by its clients
"The Dolphin export pipeline has been constructed for maximum physical throughput of some 90.6 million cubic metres, nearly 60 per cent more than we will be transmitting under our current development and production-sharing agreement," Sayegh said.
"We have customers seeking further supply from us – if and when we can provide them with extra gas… we are also in discussion with the Qatari authorities on the possibilities and dimensions of further gas supply in future years."
Dolphin project, the first trans-Gulf gas line, was officially inaugurated early this year in the port of Ras Laffan, the hub of Qatar's mammoth gas industry.
Dolphin officials have estimated the total cost of the project at nearly $5 billion (Dh18.3bn), including the $1.6bn gas processing facilities in Ras Laffan, which serves the giant offshore North Field, the world's largest single reservoir of non-associated gas, with deposits of more than 900 trillion cubic feet.
Dolphin Energy is owned 51 per cent by Mubadala Development Company, on behalf of Abu Dhabi.