The local Dana Gas announced on 3 January that its 100 per cent subsidiary United Gas Transmissions Company (UGTC) had signed an estimated AED 670 million ($183 million) build-own-operate (BOO) agreement with Emirates General Petroleum Corporation (Emarat) for a 48-inch-diameter, 30-kilometre-long gas pipeline from Sajaa to Hamriyah free zone (HFZ) in Sharjah emirate.
The common user gas pipeline, with nameplate capacity of 1,000 million cubic feet a day (cf/d), will primarily supply feedstock for a power plant and industries planned to be set up in the HFZ. Construction of the pipeline will take about a year. The scheme will be operated by a new project company which will be owned 50:50 by Dana Gas and Emarat. Twenty-five-year offtake agreements have been signed between Dana/Emarat and the Federal Electricity & Water Authority (FEWA), the Sharjah Electricity & Water Authority (SEWA) and Sharjah-based Crescent National Gas Corporation (CNGSL). Gas for the proposed pipeline will be primarily sourced from the new 600 million-cf/d plant under construction at Sajaa by the local Petrofac International. Gas for the plant will be mainly sourced from the offshore Mubarak field; the remaining volume is expected to be imported from Iran's Salman field, for which the local Crescent Petroleum Company has already signed a preliminary gas purchase agreement (MEED 14:5:04).
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