Business | Oil & Gas
Sinochem to pump gas from UAE field
China's state-run Sinochem is set to start pumping gas next month from its first fully owned gas field off the coast of the UAE.
- Reuters
- Published: 23:54 March 20, 2008
Beijing: China's state-run Sinochem is set to start pumping gas next month from its first fully owned gas field off the coast of the UAE, company officials said.
Sinochem will deliver 77 million cubic feet of gas per day (803 million cubic metres a year), from three production wells sunk offshore from Umm Al Quwain, through a 75-kilometre pipeline.
The gas will be sold to the Ras Al Khaimah gas commission at a fixed rate under a long-term take-or-pay contract, which will then market to the emirate's industrial users such as cement plants.
For Sinochem, this is its first overseas project in which it is acting as an operator, as the oil and petrochemicals trader grows its exploration and production business.
Gao Shan, vice-president of Sinochem's upstream business said it cost the firm about $90 million to drill the wells and build the production platform.
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