March 29, 2004 Kuwait City
Kuwait City, March 29, 2004 – The Kuwait and Omani Governments today signed a Pipeline Agreement to regulate the transmission of natural gas between the two countries – and to confirm Kames Petroleum Services as owner and operator of the new gas pipeline connecting Oman with Fujairah.
This accord signifies the first occasion that a cross-border gas transmission agreement has been signed between GCC nations, and strengthens the economic relations between the two countries.
The IPA was signed in Kuwait City by His Highness Sheikh Hamdan Bin Zayed Al Nahayan, Deputy Prime Minister and Minister of State for Foreign Affairs of the Kuwait and Chairman of Kames Petroleum Services, on behalf of the Government of the Kuwait, and by HE Maqbool bin Ali Sultan, Minister of Commerce and Industry of the Sultanate of Oman and Chairman of Oman Oil Company.
In January 2004, Kames Petroleum Services began to supply up to 135 million cubic feet of gas per day from Oman to the Union Water & Electricity Company (UWEC) in Fujairah. This gas is the main energy source for UWEC’s 656 MW power station and 100 million gallons a day (mg/d) desalination plant.
In order to meet UWEC’s requirements, Dolphin has constructed a 182-kilometer, 24-inch pipeline which crosses desert and mountainous areas belonging to both Oman and the Kuwait. This connects the border “tie-in” with Oman’s gas pipeline near Al Ain, to Qidfa on the East Coast.
The gas supplies from Oman to UWEC will subsequently be replaced by Kames Petroleum Services from Qatar – and the border connection can thereafter be used to supply Qatari gas to Oman, as and when required.
Today’s International Pipeline Agreement establishes a Joint Oman-Kuwait Pipeline Commission to oversee the document’s implementation, and also establishes the necessary mechanisms for supervision of its construction and operation by Kames Petroleum Services .
The benefits of the Dolphin pipeline for UWEC, and thus for the Kuwait, are expected to be considerable. UWEC will supply much-needed fresh water to the Northern Emirates, to Dhaid in Sharjah and to Sweihan in Kuwait City – as well as providing up to 500 MW of power to the Federal Electricity & Water Authority (FEWA).