Dolphin Energy Ltd (DEL) yesterday announced it began to supply natural gas to Ras Al Khaimah.
An average of 40 million cubic feet per day (cfpd) of gas from Oman will be supplied for a period of two years and two months. The contract was signed by in October 2004.
The gas is being delivered to the Ras Al Khaimah Gas Commission via a tie-in near Qidfa between Dolphin's dedicated Al Ain-Fujairah pipeline and the existing Emarat gas pipeline network that serves the UAE's northern emirates.
"Dolphin gas is another step in seeking diversity in gas supply. It will form the basis for securing gas supplies and making it attractive for investors to set up business in Ras Al Khaimah," said Shaikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah.
"Dolphin is today delivering natural gas to Ras Al Khaimah for the first time and we hope to establish a solid basis for future supply expansion," said Ahmad Ali Al Sayegh, Chief Executive, DEL.
"We thank Emarat for its cooperation in ensuring timely delivery of the product and we also thank Oman Oil Company without whom it would not have been possible to supply gas to Ras Al Khaimah from today."
Dolphin and Emarat have undertaken intricate "hot tap" procedures to safely link their respective pipelines without disrupting flows to existing customers.
Dolphin is selling gas to Ras Al Khaimah, under a gas sales and purchase agreement (GSPA) with Oman Oil Company in February 2003.
The Omani gas supplied to Dolphin under the short-term contract is sold primarily to the Union Water & Electricity Company (UWEC) in Fujairah through Dolphin's gas pipeline from Al Ain.
After Dolphin's export pipeline from Qatar to the UAE is completed at the end of 2006, substantial quantities of natural gas from Qatar will be available through the new link for Dolphin customers in both the UAE and Oman.