Dana Gas, Emarat sign JV agreement

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, and Emirates General Petroleum Corporation (Emarat), have agreed to form a joint venture to own, manage and operate the Middle East 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 has fifty fifty partnership 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 project “Hamriyah Gas Pipeline Project” is a 48” gas pipeline that connects the Sharjah gas hub at Sajaa to the fast-growing industrial area at Hamriyah, and covers a distance of 32 kms, with a capacity of one billion cubic feet per day. Soon after its completion in March this year, the 48” pipeline will deliver gas supplies to the three end-users.