WHEN THE full flow of gas from Maqta in Abu Dhabi to Jebel Ali started earlier this year, a significant step was taken in the grand plan to meet Dubai's fast-paced gas demand growth.

Through the 48 inch, 112 km pipeline, 500 million cu ft per day of gas is now providing a smooth supply of gas to the Jebel Ali industrial area.

The pipeline is part of a major gas development scheme - being developed by the Abu Dhabi Gas Company (Atheer) - focused on upstream processing facilities in Abu Dhabi and associated pipelines.

The second phase of the emirate's massive $1.3 billion onshore gas development (OGD) - called OGD-2 - at Habshan has started production.

Located over the huge Bab oil and gas field, ultimate output from the OGD-2 is expected to reach one billion cu ft per day of dry gas for domestic consumption and 55,000 bpd of condensate.

A third phase (OGD-3) will involve the extraction of wet gas from the Thamama reservoirs, from which condensate will be stripped and the remaining dry gas injected to maintain reservoir pressure.

Also onshore, the Asab Gas Development (AGD) is in its second phase following the first phase construction of processing facilities to treat approximately 830 million cu ft per day of gas from the Thamama F and G reservoirs and the production of up to 100,000 bpd of condensate for processing at Ruwais refinery.

Now, AGD-2 is being designed to increase natural gas liquids (NGL) recovery from the first phase.

The principal objectives of Atheer revolve around the development of natural gas resources in Abu Dhabi to secure additional supplies of natural gas for future domestic demand, particularly for electricity and water desalination plants and chemical industries, in addition to injection into oil reservoirs to enhance oil production.

The development of the Taweelah area into a gas-based industrial zone will also greatly increase demand.

Such is the pace of growth in Dubai, however, that the UAE is also looking further afield to ensure adequate supplies.

A development and production sharing agreement for the estimated $3.5 billion Dolphin project, which will see two billion cu ft of Qatari North Field gas supplied to Abu Dhabi and onwards into the UAE and Oman every day by 2005, is set to be signed this month, with upstream development work expected to be completed by the end of this year.

Qatar and Dolphin Energy Limited (DEL) have invited 22 international, regional and local firms to bid for three separate contracts covering front end engineering and design (FEED) for upstream and midstream works, and an environmental impact assessment survey for offshore gas pipelines.

DEL is the development company responsible for implementing the project.

ABB, Bechtel, Fluor Daniel with Worley, Foster Wheeler with Sofresid, Kellogg Brown & Root, Parsons International with Mustang, and Costain and Technip are said to have bid for the upstream package of the project.

The Dolphin venture was said earlier this year to have been hampered by disagreements over transfer prices to Dubai.

Dubai will receive Dolphin gas from Abu Dhabi largely through existing networks, and the project will go some way to meeting gas demand in the emirate, which is already forecast to increase by almost seven per cent every year through to 2005.

Dubai's gas supply has traditionally come from the neighbouring emirate of Sharjah.