The UAE’s Dolphin Energy said it hoped to secure more Qatari natural gas supplies by 2010 and saw the need for a new Gulf gas pipeline in the next few decades to meet growing demand.

CEO Ahmed Ali Al Sayegh said Dolphin, a $3.5 billion project to pipe Qatari Gas to the UAE and other Gulf states, welcomed competition from other companies as it was struggling to keep up with demand.
Qatar, which has the world’s third-largest natural gas reserves, said in February it did not expect to sign new gas supply contracts until it reviews reserves at its vast North Field.
Sayegh said Dolphin’s current pipeline had an extra capacity of 60 per cent or 1.2 billion cubic feet per day of gas and that the company was eager to conclude talks with Qatar to fill that capacity.
“There is no agreement yet, but it has always been under discussion,” Sayegh said. “I think the terms can very much be agreed well before (2010).”
Dolphin signed a deal last year to supply gas to Oman from 2008. It also has long-term gas contracts with Abu Dhabi and Dubai for supplies from 2007.
“Our existing pipeline is meeting requirement for 25 years but, if you think long-term over 50 years, then ... you will definitely see another pipeline from Qatar,” Sayegh said.
“It is possible for this to happen even sooner than this 50 year horizon,” he said, dismissing any serious impact of high steel prices or building costs on its projects.
“I think pipelines in the long term will provide a good value for both government ... and consumers.”
Demand for energy in the Gulf region has been rising rapidly due to population growth and an economic and construction boom on the back of record oil revenues.
Sayegh said prices remained competitive and that Dolphin welcomed competitors such as UAE-based Dana Gas.
“We didn’t make any money unfortunately in the marketing ... but we are committed to delivering gas at the prices sold to us in Qatar plus a transport tariff to our customers here in the UAE and Oman,” he said.
“I hope others can begin to supply gas because it’s a huge burden on us. We are faced with many requests for extra gas and we have unfortunately sold all our quantities to our existing customers.”
Abu Dhabi’s state-run Mubadala group owns 51 per cent of Dolphin, while France’s Total and Occidental Petroleum of the United States each hold a 24.5 per cent stake.
Dolphin Energy Limited has approved the award of the two EPC Contracts for its forthcoming Eastern Gas Distribution System (EGDS) in the UAE.
The first award for the East & West Facilities EPC Works went to Consolidated Contractors Company (CCC), which covers engineering, procurement and construction of civil, pipelines, mechanical, SCADA, telecommunication and electrical works with respect to expanding, modifying and upgrading the existing Eastern Gas Distribution System; and construction of the new Dolphin Operations/Administration Building and expanding the Control Building at Al Ain Gas Terminal.
Punj Lloyd Ltd was awarded the Civil and Fiber Optics Cable EPC Works with respect to the existing Eastern Gas Distribution System.
When the construction of the Dolphin Gas Project is completed at the end of the current year, substantial quantities of natural gas will flow from Qatar to the UAE.
The upgrade of the existing EGDS will enable Dolphin to deliver its gas to its customers in Abu Dhabi, Dubai and the Northern Emirates during 2007 and subsequently Oman in 2008.
Dolphin Energy is preparing to market some 90,000 bpd of condensate that will be part of its offtake from Qatar’s North Field, Sayegh said.
“We are getting ready to market the gas liquids we will be offtaking in Qatar,” Sayegh said.
Sayegh said Dolphin would be producing 486,000 bpd of oil equivalent form its North Field blocks.