Dana Gas completes Sharjah pipeline

02 June 2008

Sharjah-based Dana Gas says it has completed and inaugurated the Middle East’s first common user gas pipeline, linking the Sharjah gas hub at Sajaa with the Hamriyah industrial area.

The 32-kilometre, 48-inch-diameter Hamriyah Gas Pipeline will supply gas to the Federal Electricity & Water Authority (Fewa), the Sharjah Electricity & Water Authority (Sewa) and a subsidiary of Dana, the Crescent Natural Gas Company.

The pipeline is owned jointly by Dana and the Emirates General Petroleum Corporation (Emarat). It has a total capacity of 1 billion cubic feet a day, most of which will be used for power generation, with the remainder for industrial purposes.

Dana, through Crescent, has a long-term gas supply deal to deliver Iranian gas to the UAE. However, the first deliveries have been delayed by Tehran’s insistence that the two sides renegotiate the gas export price. The cost of gas has risen rapidly in the last three years as oil prices have soared and demand for gas increased.

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