Abu Dhabi starts selling gas to Dubai

Published June 10th, 2001 - 02:00 GMT

Abu Dhabi has started selling natural gas to its northern neighbor Dubai through a pipeline linking the two members of the United Arab Emirates (UAE), Dubai's top energy official said in statements published Thursday, June 7. 


"The supply of Abu Dhabi gas has started," Sheikh Ahmad bin Said al-Maktoum told Gulf News, giving no details on prices. 


A senior official with the Abu Dhabi Gas Co. (ADGC) confirmed that supplies of six million cubic meters (200 million cubic feet) of gas per day commenced on May 30. 


Gas deliveries are expected to reach a maximum level of 33 million cubic meters (1.1 billion cubic feet) to meet the increasing demand for gas from Dubai's industry and power sector, according to Sheikh Ahmad. 


A 112-kilometre (67-mile) pipeline was built at a cost of $84 million from the Maqta region of Abu Dhabi to Dubai's free trade zone of Jebel Ali as part of a deal signed by ADGC and Dubai's gas authorities. 


ADGC, a subsidiary of state-owned Abu Dhabi National Oil Company (ADNOC), was founded in 1999 with a capital of $135 million and a mandate to treat and distribute natural gas inside the UAE. 


Apart from Abu Dhabi and Dubai, the two richest emirates, the UAE also comprises Ajman, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Qawain. — (AFP) 


© Agence France Presse 


© 2001 Mena Report (www.menareport.com)

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