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The UAE’s Dolphin Energy Ltd has signed a deal to supply Oman with 200 million cubic feet per day of natural gas starting 2008.
“The company has signed a gas sales agreement with Oman Oil Company (OOC) to deliver an average 200 million standard cubic feet of gas per day to OOC from early 2008,” Dolphin said, adding that it was a 25-year agreement.
The $3.5 billion Dolphin gas project aims to pump an initial two billion cubic feet per day of natural gas from Qatar’s giant North Field in the Gulf to buyers in the UAE by 2006.
“With the signing of this agreement, we can all celebrate the creation of a true GCC gas grid – linking Qatar, the UAE and Oman,” Dolphin Energy chairman Sheikh Hamdan Bin Zayed Al Nahayan said in the statement.
Dolphin has already started to supply natural gas to the emirates of Fujairah and Ras Al Khaimah. OOC has been supplying Dolphin with around 135 million cubic feet a day of gas via a pipeline. Dolphin aims to replace the supplies from OOC with gas from Qatar via its inter-Gulf gas network and then supply Oman with Qatari gas.
Abu Dhabi's state-run Mubadala group owns 51 per cent of Dolphin, while France’s Total and Occidental Petroleum of the US each hold a 24.5 per cent stake.