Eric Watkins
Senior Correspondent
LOS ANGELES, June 18 -- Abu Dhabi National Oil Co. (ADNOC) and Dolphin Energy Ltd. have signed a 25-year agreement for Dolphin to lease and operate ADNOC's Eastern Gas Distribution System (EGDS) in Abu Dhabi.
Dolphin will lease EGDS to deliver the company's processed Qatari gas to the UAE and Oman. The system currently supplies gas to Abu Dhabi and Dubai.
The agreement also specifies a direct swap deal under which Dolphin will deliver gas to ADNOC's customers on behalf of ADNOC, and ADNOC will provide gas to Dolphin's customer on behalf of Dolphin.
Dolphin's major strategic initiative, the Dolphin Project, produces and processes gas from Qatar's North field and transports the dry gas by subsea export pipeline from Qatar to the UAE. It began operating in July 2007.
Long-term customers for Dolphin gas from Qatar are Abu Dhabi Water & Electricity Authority, Union Water & Electricity Authority, Dubai Supply Authority. Oman Oil Co. became a customer in 2008. Each has signed a gas supply agreement with Dolphin Energy for 25 years.
Dolphin Energy is owned 51% by Mubadala Development Co., on behalf of the Abu Dhabi government, and 24.5% each by Total SA and Occidental Petroleum Corp.
Contact Eric Watkins at [email protected].