Almost in time for the 30th anniversary of Oman's domestic gas production by PDO, Oman has finally got its first gas imports from Qatar.
Its a daily volume equivalent to about 8% of Oman's total gas produced domestically from Government owned fields and sold to downstream customers. As the agreement was signed in 2005, the price probably ain't too bad, especially at the lower oil prices these days. And Oman got to sell gas the other way for a few years too, which paid for the pipeline etc.
Rumour has it we could have gotten the gas earlier, except it was desperately needed in the UAE for power stations, and needed especially urgently with RAK Gas's gas processing plant in the UAE down after a small.... fire incident (no one hurt apparently), and electricity demand maxed out by the summer heat.
This is great news for Oman, as long as the price is right, which I don't know well enough to post. Oman needs the gas, and this will give a bit of breathing space for a few years at least.
PS: If anyone can find that price out, email me and I'll probably send you a big dragon thank you.
Dolphin Energy delivers first natural gas to Oman
Nov 1, 2008
WAM ABU DHABI, Nov. 1st, 2008: Dolphin Energy Limited today said it began to supply gas to Oman today, completing the strategic Qatar-UAE-Oman natural gas grid first proposed in 1999.
The company announced that Dolphin gas from Qatar was now flowing to the Sultanate for the very first time, as part of a 25 year Gas Sales Agreement (GSA) signed in 2005.
Al Dolphin's gas is produced offshore Qatar and is processed onshore at its Ras Laffan Gas Processing Plant. The gas is then compressed and pumped through the Export Pipeline to Dolphin's Receiving Facilities in Abu Dhabi, UAE, for distribution to customers.
Supplies for Oman subsequently flow across the country via the company's Eastern Gas Distribution System (EGDS) to Al Ain, where the EGDS connects with a new Omani pipeline on the Oman border.
Dolphin Energy began to deliver gas to UAE customers in July 2007: it has been supplying them with an average of 2 billion standard cubic feet of gas a day (scf/day) since February 2008. Oman will be receiving some 10 percent of this quantity, 200 million scf/day, under the terms of the GSA.
Dolphin Energy's CEO, Ahmed Ali Al Sayegh said: "This is a historic moment for Dolphin Energy - it is equally significant for the three nations who have embraced and supported the Dolphin Gas Project from the very beginning.
"We have always been grateful for Oman's supply of gas to our Al Ain-Fujairah pipeline project in 2004, which enabled us to deliver much needed gas to the Northern Emirates three to four years earlier than if we had waited for completion of our Qatar facilities.
"Now Dolphin, in its turn, can contribute to Oman's own future economic growth." Dolphin Energy Limited was created to develop substantial energy projects throughout the GCC and to create long-term economic wealth and new business opportunities for GCC citizens, far into the future.
Dolphin Energy'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 sub-sea export pipeline from Qatar to the UAE, which began in July 2007.