Both supply agreements are for 25 years. Although no details were given about the quantities involved, it is understood that ADWEA is committed to taking about 1,000 million cubic feet a day (cf/d) of gas, while UWEC will take about 150 million cf/d. ADWEA will use the gas to supply its generating subsidiaries in the eastern region, including Al-Taweelah Power Company, Arabian Power Company, Emirates CMS Power Companyand Gulf Total Tractebel Company. The UWEC gas will be used as feedstock for the first phase of the Fujairah power and desalination complex, which will have capacity of 625 MW and 100 million gallons a day. The Fujairah plant will run on Omani gas until the Dolphin supplies come on stream, expected in late 2006.

The gas sales agreements are further evidence that the various components of the Dolphin gas project are falling into place.

Contractor selection is expected in November for the main equipment supply and engineering, procurement and construction (EPC) packages. Japan’s JGC Corporationis the frontrunner for the Ras Laffan gas processing plant, having submitted a low bid of $1,600 million. The UK’s Rolls Roycewith the US’ Dresser Randis frontrunner for the compressor supply package, while for the three offshore EPC packages, Jebel Ali-based J Ray McDermott Middle Eastis the low bidder (MEED 3:10:03; 26:9:03).