RAK Gas is investing $100 million (Dh367m) in infrastructure and tying up with other producers to provide natural gas to the energy-hungry industrial sector in Ras Al Khaimah, said a senior official.
Ruurd Abma, Director of Operation at RAK Gas, said: “We are currently investing more than Dh360m in the infrastructural needs of the gas sector to meet the increasing industrial needs in the emirate, which is currently witnessing a boom.
Ral Al Khaimah needs 250 million standard cubic feet (mmscf) of gas daily, Abma said.
“As we receive only 180 mmscf currently from our fields and suppliers, there is a shortage of 130 mmscf. The emirate greatly depends on an agreement signed with Umm Al Quwain to provide RAK with the gas from an Umm Al Quwain gas field.
“A 75-km pipeline was constructed for this purpose. The Umm Al Quwain fields will provide RAK with 80 mmscf by year-end,” Abma said.
“The emirate will also import gas from the West Bukha offshore field, located off the Musandam Peninsula in Oman. A total of 40 mmscf will be imported from this field by end of April,” he said.
Abma added the shortage will also be covered by supply agreements with producers such as Dolphin Energy Limited. Without specifying the quantities involved, he said an agreement with Dolphin was renewed recently. “Sometimes, Dolphin provides us with 40mmscf of gas and sometimes 36mmscf, according to the quantities available with them,” he said.
Sources at RAK Gas said the deal with Dolphin aims to meet the increasing demand for natural gas in RAK and the falling rates of production at the emirate’s fields.
According to a source: “The lack of gas coupled with increasing demand and the realty and industrial boom has pushed RAK Gas to look for radical solutions. The plan is to negotiate with suppliers such as Dolphin, along with increasing investment in existing fields.”
RAK Gas is currently developing two fields off the emirate’s coast. The first will start production in April and the second by the end of 2008.
RAK to spend $100m to meet gas demand