By an OGJ correspondent
NICOSIA, Jan. 22 -- State-run Oman Gas Co. (OGC) has awarded a contract valued at 2 million Oman rials ($18.7 million) to Dodsal & Co. of India for the construction of a 48 km natural gas pipeline spur to join the Fahud-Sohar line at Mahdha and terminate at Buraimi on the border with the UAE.
Conceived as bidirectional, the 24-in. pipeline can carry either exports or imports of gas, depending on the future needs of the country.
Gas from the new line initially will be exported to the UAE for use as feedstock for a 620 Mw power plant and 100-million gal/d desalination plant planned for Qidfa in Fujairah.
Omani officials said the new pipeline is a key element in a plan to export surplus Omani gas prior to the start-up of heavy industries and petrochemical plants projected for an industrial complex at Sohar.
Several Sohar ventures are scheduled to start only after 2005, enabling Oman to undertake short-term exports of available gas to generate returns on the government's investment in the Fahud-Sohar gas pipeline.
Omani officials said the new pipeline will also link the Sultanate's gas network with a regional gas grid planned by Abu Dhabi's Dolphin Energy Ltd., allowing for future imports of gas.
Dolphin was established by the UAE Offsets Group to develop and transport Qatari natural gas for the markets of the UAE and Oman and eventually to Pakistan as part of an estimated $10 billion initiative.
Engineering consultants ILF & Partner, who earlier handled OGC's $300 million Sohar and Salalah lines will undertake project management for the Mahdha-Buraimi pipeline project.
Completion of the Sohar and Salalah lines in August 2002 more than doubled Oman's network, most of which is owned by OGC.
Dodsal built the $124 million line to Sohar from natural gas deposits in central Oman, while a consortium of Italy's Snamprogetti and Saipem constructed the $180 million line to Salalah.
OGC is 80% owned by the Oman government and 20% by Oman Oil Co..