Business | Oil & Gas
Dubai to build regasification terminal
The Dujbai Supply Authority (Dusup) on Sunday said it will develop a floating liquefied natural gas (LNG) regasification facility at the DP World Jebel Ali terminal.
- Staff Report
- Published: 15:13 April 20, 2008
- Shaikh Ahmad Bin Saeed Al Maktoum, chairman of Dusup, and Kathleen Eisbrenner, executive vice-president of Global LNG of Royal Dutch Shell, at the signing ceremony.
- Image Credit: Supplied picture
Dubai: The Dujbai Supply Authority (Dusup) on Sunday said it will develop a floating liquefied natural gas (LNG) regasification facility at the DP World Jebel Ali terminal.
"The new facility will supplement the emirate's existing supplies of natural gas during summer peak demand, delivering environmental and security of energy supply benefits," a statement said.
Dusup has selected Shell as adviser and project manager for the development phase. Shell will also be the main LNG supplier and will continue to provide advice to Dusup once the facility is completed.
Golar Freeze, an existing LNG ship, will be chartered by Dusup from Golar LNG Company and converted into a floating storage and regasification unit to be moored offshore within the DP World Jebel Ali Terminal.
LNG ships will moor alongside the Golar Freeze to offload their cargoes. Gas will be piped through a sub-sea pipeline from the Golar Freeze into Dubai's natural gas pipeline network to industrial customers.
The regasification capacity of the Golar Freeze will be three million tonnes per annum, equivalent to 400mmscf/d of natural gas.
First gas is expected during 2010. In parallel, Shell Western LNG and Dusup have signed a sales and purchase agreement for the short and long-term supply of LNG to be supplied from Shell's global portfolio, primarily Qatar.
Shaikh Ahmad Bin Saeed Al Maktoum, chairman of Dusup, said, "Energy demand is growing rapidly in Dubai because of the strong growth of our economy. Access to the global LNG market will help Dubai to meet peak summer demand in a more sustainable way, reducing emissions and improving local air quality. Dubai will also benefit from our peak summer demand being countercyclical to the global winter demand peak in the LNG market."
Dusup is a Dubai government-owned entity that owns the gas pipeline network in the emirate and has the sole rights to supply gas.
Shell is an LNG pioneer with a leading position amongst private companies in the growing global LNG business. Shell has the largest global LNG supply portfolio of any international oil and gas company.
Linda Cook, Executive Director of Royal Dutch Shell plc, said: "Shell is pleased to be selected by Dubai to help with this project. Dubai has many visionary projects and I think, in the field of energy, this counts amongst them. It will deliver local and global environmental benefits, and diversify Dubai's sources of energy supply."
The project will assist in alleviating the emissions of key air pollutants such as sulphur oxides, nitrogen oxides and particulates.
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