Dolphin, Qatar Petroleum Ink Subsea Gas Supply Deal

Qatar Petroleum (QP) and Dolphin Energy have entered into a new long-term gas sale and purchase agreement, under which QP will deliver additional quantities of gas to Dolphin for export to the UAE through the existing 48-inch subsea pipeline.

The agreement was reached and signed in the framework of the ‘brotherly’ relations and cooperation between the State of Qatar and the United Arab Emirates, and in line with the goals of both countries to expand areas of cooperation and pursue of mutually beneficial opportunities.

The SPA was signed in Doha by Saad Sherida Al-Kaabi, president and CEO of QP and Ahmed Ali Al Sayegh, managing director of Dolphin.

Saad Al-Kaabi described the agreement as another important achievement for the first cross-border gas pipeline project in the Middle East, and also said: “This agreement reinforces confidence in Qatar as a reliable regional and international supplier of gas as a clean energy source.”

“QP’s support of the flagship Dolphin Gas Project has been instrumental in meeting the gas requirements of our brothers in the United Arab Emirates, and this new agreement is another strong testament to our commitment in this regard.” Al-Kaabi concluded.

Ahmed Al Sayegh said: “These developments help support the UAE’s development and transition to a low carbon economy and demonstrate our continued commitment to enhance energy security for the UAE by offering a source of reliable, clean energy for power generation. The success of the Dolphin Gas Project is, in part, driven by our ability to meet the needs of our customers. As their requirements have changed, so we have responded accordingly and worked closely with our strategic partner, QP, to make this possible. This agreement also illustrates the strong bond we share with our brothers in Qatar and I would like to take this opportunity to thank QP whose continuous support has helped create a new chapter in our successful history. This is a proud day for us all.”

The Supply of the additional gas quantities under this new agreement will be allocated to SEWA and RAKGAS LLC using the existing UAE Eastern Gas Distribution Network.

Dolphin started gas supply to the UAE in July 2007 and in February 2008, achieved full throughput of 2 billion standard cubic feet per day. Last year, the company upgraded its compression facilities and installed three new export gas compressors at its gas processing plant in Ras Laffan to match its export gas pipeline’s supply capacity of 3.2 billion standard cubic feet per day.