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).