Dana Gas, the Middle East's first regional private-sector natural gas company, and Emirates General Petroleum Corporation (Emarat), have agreed to establish a joint venture to own, manage and operate the Middle East's first common user gas pipeline, which will be completed in March this year.
Dana Gas and Emarat, along with the three end-users the Federal Electricity & Water Authority of the UAE (FEWA), the Sharjah Electricity & Water Authority (SEWA), and Dana Gas affiliate Crescent Natural Gas Company Limited (CNGCL) - signed a Memorandum of Understanding (MoU) for the implementation and utilization of the pipeline in January 2006. Dana Gas and Emarat each have a 50 percent stake in the construction, ownership and operation of the pipeline. Phase one of the project was completed in May 2006 and has since been delivering gas to the SEWA power station at Hamriyah.
The main pipeline of the joint Hamriyah Gas Pipeline Project is a 48-inch gas pipeline that connects the Sharjah gas hub at Sajaa to the fast-growing industrial area at Hamriyah, and covers a distance of 32 km, with a capacity of one billion cubic feet per day. Soon after its completion in March this year, the 48-inch pipeline will deliver gas supplies to the three end-users.
Commenting on the agreement, Rashid Al-Jarwan, General Manager of Dana Gas, said, "This project is a prime example of the solutions that can be achieved through the cooperation of government and private sector entities." He added that "the strategic partnership between the two companies for this project in the UAE has been very positive and has laid the groundwork for future projects throughout the region. We see this joint venture agreement as an opportunity to build upon for future cooperation, thereby improving the services to the end users of this vital pipeline."