Dana Gas - Emarat Joint Project achieves key milestones

The fifty-fifty joint venture was established to build, own and operate a 30 km, 48 inch, common-user gas pipeline in the UAE from the Sharjah gas hub at Sajaa to the Hamriyah Free Zone (HFZ), with a capacity of one billion cubic feet per day, to serve power plants of the Federal Electricity and Water Authority of the UAE (FEWA), the Sharjah Electricity and Water Authority (SEWA), and industrial customers in the Hamriyah Free Zone (HFZ).

"The implementation of the project has made good progress and is on schedule for completion by end September of this year," said Mohammad Makkawi, General Manager of United Gas Transmissions Company (UGTC), the gas pipeline subsidiary of Dana Gas. Khalid Al Awadi, Gas Operations Manager of Emarat added "It has been a positive partnership between the two companies to serve the needs of customers in the UAE and we look forward to expanding this into new projects in the future."

"This project has been a good example of a private-public partnership, and what solutions can be achieved rapidly through cooperation between a government company and a private company, with the authorities at the Federal and Emirate levels," said Rashid Al-Shamsi, General Manager of Emarat.

The pipeline material was purchased from Japan's pipe mills Sumitomo and JFE and was delivered to Sharjah during the fourth quarter of 2006. Orders for all long lead items were placed and deliveries are scheduled for 1st and 2nd quarters of 2007. Pipeline engineering works are completed and the construction of the pipeline is underway by Dutco McConnell Dowell of Dubai. Phase 1 of the project comprising a 10" pipeline for early gas delivery to SEWA's new power station at Hamriyah was completed on schedule in June 2006 and has been operating efficiently since then.

Dana Gas and Emarat will have a fifty-fifty partnership in the construction, ownership and operation of the pipeline. The three users of the pipeline, who have entered into the agreement to share its capacity, are the Federal Electricity and Water Authority of the UAE (FEWA), the Sharjah Electricity and Water Authority (SEWA), and the gas marketing company CNGCL, which is an Affiliate of Dana Gas.