Abu Dhabi National Oil Company (ADNOC) and Dolphin Energy Limited yesterday signed a long term agreement for Dolphin to lease and operate ADNOC’s Eastern Gas Distribution System (EGDS) in the Emirate of Abu Dhabi. This well-established pipeline network will be managed by Dolphin Energy for 25 years.
The EGDS is currently used to supply gas to ADNOC’s customers in Abu Dhabi and Dubai and will be leased by Dolphin to deliver the company’s processed gas from Qatar to customers across the UAE, and shortly to Oman. The Lease Agreement replaces a temporary Access Agreement and interim transportation agreements with ADNOC.
The EGDS Lease Agreement also specifies a direct swap arrangement where Dolphin Energy will deliver gas to ADNOC’s customers on behalf of ADNOC and ADNOC will provide gas to Dolphin’s customer on behalf of Dolphin.
The Lease Agreement was signed at ADNOC’s Headquarters by Yousef Omair Bin Yousef, CEO of ADNOC and Secretary General of the Supreme Petroleum Council, and Dolphin Energy CEO Ahmed Ali Al Sayegh.
Yousef Omeir Bin Yousef stated afterwards: “ADNOC, as the pioneering oil and gas producer in Abu Dhabi, is pleased to have established a long term yet flexible agreement with Dolphin Energy – one that will be of direct benefit to our customers and to consumers.” Mr Al Sayegh commented: “We are grateful to both ADNOC and GASCO for their support at every stage of Dolphin’s involvement with the EGDS. This Lease Agreement now enables Dolphin to directly manage every link in its value chain, from gas production offshore Qatar through processing, transport viaDolphin energy and adnoc sign 25 year gas system lease agreement.
© 2008 Al Bawaba (www.albawaba.com)