Shell signs on for Dubai LNG supply
Wire services
Anglo-Dutch supermajor Shell and QatarGas plan to begin supplying liquefied
natural gas to Dubai in the peak demand summer period from 2010 after
signing deals with the emirate, Shell’s regional vice president for gas and
power, Martin Trachsel, said.
Shell aims to supply around 1.5 million tonnes of LNG a year, Trachsel said
yesterday.
Some of the gas will come from Qatar, and some from elsewhere in Shell's
portfolio, he told Reuters by telephone.
The supply deal extends for about 15 years, Reuters reported.
"We are delighted to be assisting Dubai in this project and we believe it will
offer cost-competitive and clean energy supply for Dubai for many years to
come," Trachsel said.
Dubai, one of seven states in the United Arab Emirates, is harnessing the
region's windfall from record oil prices to develop tourism, trade and
financial services.
Demand for power and water in the emirate is surging by more than 20% a year,
driven by rapid economic and population growth, Dubai Electricity and Water
Authority (Dewa) said in November.
Dubai Supply Authority (Dusup), a government entity which owns the emirate's
gas pipeline network and has the sole rights to supply gas users, is
building a floating LNG regasification facility at Jebel Ali port, it said
in a statement yesterday.
Under the plans an existing LNG carrier will be converted into a floating
storage and regasification unit with capacity of 3 million tonnes a year,
the equivalent of 400 million cubic standard feet of gas per day.
Shell will advise Dusup on the vessel's installation.
Dolphin Energy imports gas to the UAE from Qatar and produced first gas from
its own facilities at Qatar's giant North Field last June.
The company has contracts to supply the Abu Dhabi Water & Electricity
Authority, Union Water and Electricity Authority and Dusup.
Dolphin said yesterday it had started supplying gas to the emirate of Sharjah
on 18 April. It also expects to complete a supply deal with the Oman Oil
Company in 2008.
21 April 2008 04:46 GMT
| last updated:
21 April 2008 07:33 GMT
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