Dolphin signs long-term contracts with ADWEA and UWEC
Posted: 19 October 2003
Dolphin Energy Limited (DEL) announced today the signature of binding
agreements to supply natural gas to two of the UAE’s leading
power and water companies.
During successive ceremonies in Abu Dhabi, the contracts were signed
for the supply of future Dolphin gas to the Abu Dhabi Water &
Electricity Authority (ADWEA) and the Union Water & Electricity
Company (UWEC).
The signings took place at the Palace of His Highness Sheikh Hamdan
Bin Zayed Al Nahyan, the UAE’s Deputy Prime Minister and Minister
of State for Foreign Affairs, who is also Chairman of Dolphin Energy
Limited.
The contract between Dolphin Energy and ADWEA was signed by Sheikh
Hamdan and the Chairman of ADWEA, His Highness Sheikh Diab Bin Zayed
Al Nahyan. Subsequently, the contract between Dolphin Energy and
UWEC was signed by Sheikh Hamdan and UWEC Chairman His Highness
Sheikh Hamed Bin Zayed Al Nahyan.
Abu Dhabi Emiri Decree No 8 of 2002, issued on May 26 last year,
approved the incorporation of Dolphin Energy and defined its role
in detail. On May 28, 2002, the Abu Dhabi Supreme Petroleum Council
issued its Decision Number 1 of 2002, which clarified Dolphin’s
responsibilities and described its marketing and distribution tasks.
The Dolphin Gas Project is a unique strategic regional energy initiative,
which comes on stream in 2006. It involves the development of substantial
natural gas reserves from Qatar’s offshore North Field, their
processing onshore at Qatar’s Ras Laffan – and transportation
by export pipeline of up to 3.2 billion cubic feet a day (bcf/d)
of refined natural gas to the UAE.
The Agreement with ADWEA
The contract signed with ADWEA provides for the supply of required
quantities of Dolphin gas from Qatar for 25 years to ADWEA subsidiaries
Al Taweelah Power Company, Al Arabiya Power Company, Emirates CMC
Power Company and Gulf Total Tractabel Power Company.
Sheikh Hamdan said after the signing ceremony: “This agreement
is an essential step in cementing Dolphin’s role as a leading
Middle East gas developer. The continuous support of His Highness
Sheikh Khalifa Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and
Deputy Supreme Commander of the UAE Armed Forces, has been instrumental
in developing this project and making it a reality for the people
of the UAE.”
He added: “ADWEA has always been a key element in the development
of the Dolphin Gas Project – signature of this contract is
a very important step in supplying the UAE with a secure source
of energy.”
For ADWEA, Sheikh Diab stated: “The signing of this contract
is in line with ADWEA’s program to develop the power sector
and to provide best services to citizens, as inspired by the President
His Highness Sheikh Zayed bin Sultan Al Nahayan and His Highness
Sheikh Khalifa bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy
Supreme Commander of the Armed Forces.”
He described the 25-year agreement for the supply of natural gas
as a strategic step towards acquiring a dependable long-term source
of energy, based on the pioneering contribution of Dolphin Energy.
Long Term Supplies to UWEC in Fujairah
The contract with UWEC provides for supply of Dolphin natural
gas from Qatar for 25 years.
Under its terms, the natural gas will be supplied by Dolphin to
UWEC for its new power and desalination plant in Fujairah, on the
UAE’s East Coast. The gas will flow through Dolphin’s
dedicated export pipeline to landfall at Al Taweelah in Abu Dhabi.
It will then be pumped via existing landlines to Al Ain -- and thereafter
through the new 182 kilometer, 24-inch Dolphin pipeline to Fujairah,
to be completed this December.
The contract will succeed the short-term agreement for initial
provision of natural gas by Dolphin from Oman, signed with UWEC
in February this year. This stipulated that Dolphin would supply
UWEC with Oman Oil Company gas for between 3.5 and 5 years –
from1st Quarter 2004 – prior to the completion of the Qatar
link.
“With this important agreement, Dolphin Energy confirms
its commitment to meet UWEC’s future requirements with a stable,
clean and cost-effective energy supply,” Sheikh Hamdan said
at the signing ceremony. “Everything is now in place to meet
UWEC’s long-term demand for natural gas.”
For UWEC, Sheikh Hamed commented: “The future success of
UWEC depends on secure gas supplies. This contract with Dolphin
Energy will therefore enable us to serve our market competitively
and efficiently. It will be a vital element in our program to supply
energy to homes, business and industries across the UAE for decades
to come.”
Sheikh Hamdan and Sheikh Hamed paid collective tribute to the Omani
leadership for its role in assisting the project’s initial
development. Sheikh Hamdan added: “We now have the makings
of a regional gas grid. In future, we will even be able to supply
Oman with gas for its own future projects – as and when required.”
Dolphin Energy Limited
Dolphin Energy Limited (DEL) was created to develop substantial
energy projects throughout the GCC. Its objective is to create long-term
economic wealth and new business opportunities for citizens, far
into the future.
DEL’s major strategic initiative, the Dolphin Project, involves
the production and processing of natural gas from Qatar’s
North Field, and transportation of the dry gas by pipeline to the
UAE, beginning in 2006. Dolphin Energy’s first energy initiative
comes on stream in 1st Quarter 2004, when DEL’s natural gas
pipeline from Al Ain to Fujairah is inaugurated. This pipeline will
supply the Union Water and Electricity Company in Fujairah –
initially with natural gas from Oman, and subsequently with Dolphin
gas from Qatar.
The shareholders in Dolphin Energy Limited are Mubadala Development
Company, wholly owned by the Government of Abu Dhabi, Total of France
and Occidental Petroleum of the USA.
Posted by Richard Price,
Editor Pipeline Magazine
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