Eric Watkins
Senior Correspondent
LOS ANGELES, Oct. 31 -- A consortium of Dana Gas, Single Buoy Moorings (SBM), and Granada Group has signed a memorandum of understanding to develop a 3.5 million tonne/year LNG terminal in Pakistan at Karachi's Port Qasim.
Dana Gas is a regional gas company based in Sharjah. It has plans to develop a network of LNG terminals, mainly in the Middle East and North Africa, and "to tap the LNG value chain, including LNG trading activities." The company said the consortium is holding talks with major LNG producers, which it did not name.
Dana Gas has signed a cooperation agreement with SBM under which Dana would focus on LNG marketing and SBM on the supply and operation of LNG floating storage and regasification terminals.
"The newly formed alliance will initially target LNG terminal projects in Pakistan, Lebanon and Kuwait," Dana said.
Dana Gas started business in July 2005 as "a regional, private-sector natural gas resource enterprise," affiliated with Crescent Petroleum of Sharjah.
Its Sajaa Gas PLC unit (SajGas) operates a 600 MMscfd gas treatment plant completed in November 2005 in the Sajaa area of Sharjah.
Another unit, United Gas Transmissions Co. Ltd. (UGTC), will operate a gas receiving platform connected to Crescent facilities in offshore Mubarak oil and gas field and an 80-km, 30-in. gas pipeline from the receiving platform to SajGas facilities onshore for sweetening. The platform and pipeline are under construction.
UGTC plans a pipeline to transport sweet gas in Sharjah and has an agreement to build, own, and operate a common-user gas pipeline from Sajaa to the Sharjah Hamriya Free Zone.
The UGTC facilities will carry Mubarak gas supplied by a third Dana Gas unit, Crescent National Gas Corp. Crescent National Gas also will receive gas under a 25-year agreement with the National Iranian Oil Co.
It has entered sales agreements with buyers in Sharjah, Dubai, and Oman.
Contact Eric Watkins at [email protected].