Dana Gas, and Emirates General Petroleum Corporation (Emarat), have announced the completion and inauguration of the Middle East's first common user gas pipeline, located in the emirate of Sharjah.
Dana Gas and Emarat, along with the three end-users the Federal Electricity and Water Authority of the UAE (FEWA), the Sharjah Electricity and 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. The completion of the pipeline is a milestone in Dana Gas's UAE projects. The new 48-inch pipeline is now ready to receive gas supplies from Sajaa and deliver them to the premises of the three end-users at Hamriyah.
"This is a proud moment for Dana Gas, showcasing the success of true public-private partnership in meeting the energy needs of the UAE," said Al-Jarwan, General Manager of Dana Gas. "This strategic partnership has set an example for further regional cooperation, and will elevate the level of service provided to the end users of this vital pipeline."
"We are delighted at the completion of this critically important project which clearly embodies our distinct and fruitful ties, and the existing level of cooperation between the public and private sector in launching various projects and initiatives that promise to play a prominent role in supporting and enriching the national economy of the UAE," said Acting General Manager of Emarat, Jamal Abdul Rahman Al Medfa.
Mr. Al Medfa further noted that this project carries a great deal of importance for Emarat, pointing out that the completion of the pipeline is yet another addition to Emarat's long list of accomplishments over the past years. He added that this was in line with the company's strategy of continually developing its services and entering new partnerships to diversify its investment base and raise the level of quality services presented to its clients.
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