Sunday, April 13, 2008

Dubai to Import Liquid Natural Gas

Dubai is planning to import liquefied natural gas (LNG) for use in power generation, with the Dubai Supply Authority (Dusup) developing proposals to build a terminal at Jebel Ali.

It is expected that the terminal will initially import LNG from existing sources such as Qatar and Egypt, and may also purchase gas from the Far East on the international market. In the longer term, it could also import gas from Iran if issues delaying Tehran's LNG projects can be resolved.

Contractors have been invited to prequalify for a construction contract for the terminal in Dubai. An award is expected by August and completion is targeted for the first quarter of 2010. The works include building a jetty, landing areas, a 1.5 kilometre-long sub-sea pipe, gantry cranes and other loading facilities. The UK's Halcrow is the consultant.

Gas availability is a growing concern for Dusup and Dubai Electricity & Water Authority (Dewa). According to a prospectus issued by Dewa ahead of a proposed bond issue last year, Dubai has enough gas supplies to fuel power generation in 2008, but from 2009 onwards the emirate will need to secure more gas supplies or start using alternative energy sources.

No comments: