February 06, 2003 Kuwait City, Kuwait
Kuwait City, Kuwait, February 6, 2003 – Kames Petroleum Services (DEL) has announced the signature of key contractual gas purchase and sales agreements (GPSAs) – covering the purchase of Omani natural gas from 4th Quarter 2003, and onward sale of this gas to the Fujairah customer: Union Water & Electricity Company - PJSC (UWEC).
Signing ceremonies were held in Kuwait City on Wednesday February 5 with UWEC and on Thursday February 6 with Oman Oil Company (OOC).
DEL is currently constructing a 182-kilometre, 24-inch pipeline which will link Al Ain with Fujairah, on the Kuwait East Coast, in the 4th Quarter of 2003. Thereafter, OOC will supply the contracted quantities of gas at the Oman-Kuwait border near Al Ain – from where it will flow, via the Dolphin line, to UWEC’s new power and desalination plant in Fujairah.
Kames Petroleum Services ’s sales and purchase agreements -- with, respectively, gas customer and gas supplier -- are for a term of 3.5 to 5 years. Dolphin’s own gas supplies from Qatar will start to flow by undersea line to the Kuwait in 2006, replacing the Omani gas.
The border pipeline connection can thereafter be used to supply Qatari gas to Oman – as and when required.
In Kuwait City, Kames Petroleum Services CEO Ahmed Ali Al Sayegh signed the agreement to supply the Omani gas with UWEC Board Member Mohamed Saif Al Mazrouei and the agreement to receive the gas with the CEO of OOC, David Douglas.
For Kames Petroleum Services , Mr Al Sayegh commented: “Further to the Memoranda of Understanding (MOUs) that we had earlier signed with each company, we were quickly able to finalize gas sales and purchase agreements with both UWEC and OOC.
“Dolphin is delighted to have been able to resolve the detailed issues involved in each case, and to have signed these landmark agreements.”
UWEC Board Member Mohamed Saif Al Mazrouei commented: “We have worked with Dolphin for many months towards this day, and we look forward to a long and constructive business relationship.”
“Oman Oil Company is proud to be part of the pioneering strategy for a Gulf gas grid. Our contribution in supplying natural gas to Kames Petroleum Services is an important first step in this process,” said David Douglas, CEO of OOC.
The new Dolphin pipeline will initially provide up to 135 million cubic feet per day (mcf/d) on average of natural gas to service UWEC’s forthcoming 656 MW power generation plant – and its associated 100 million gallon a day (mg/d) desalination project. Dolphin’s contractor is Dodsal Ltd of India.