OMAN-The United Arab Emirates and Oman on Monday signed a pipeline agreement to regulate the transportation of natural gas between the two countries, the official WAM news agency reported.
The accord confirmed Dolphin Energy Limited as owner and operator of the new gas pipeline connecting Oman with Fujairah in UAE, said the report.
The accord signifies the first time a cross-border gas transmission agreement was signed between Gulf Cooperation Council (GCC) countries, and strengthens the economic relations between the two countries, a statement from Dolphin Energy said.
According to the agreement, in January 2004, Dolphin Energy began to supply up to 135 million cubic feet of gas per day from Oman to the Union Water & Electricity Company (UWEC) in Fujairah. The gas is the main energy source for UWEC's power station and a desalination plant.
In order to meet UWEC's requirements, Dolphin has constructed a 182-kilometer pipeline which crosses desert and mountainous areas, connecting the border near Al Ain with Qidfa on the East Coast in the UAE.
The gas supplies from Oman to UWEC will subsequently be replaced by Dolphin's gas from Qatar and the border connection can thereafter be used to supply Qatari gas to Oman when required.
The benefits of the Dolphin pipeline for UWEC are expected to be considerable. UWEC will supply much-needed fresh water to the UAE's northern emirates, as well as providing up to 500 megawatts of power to the Federal Electricity & Water Authority.
PIN/Xinhua News Agency
News ID 17948
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