GAS SUPPLY PROJECT
- UAE Gas Supply Project involves the ownership, transportation, processing, distribution, marketing and sale of natural gas and petroleum products.
- Crescent Petroleum is a gas resource owner and has rights to existing and future gas supplies, including a supply of gas underpinned by a 25 year agreement with National Iranian Oil Company (NIOC). NIOC is the second largest gas resource holder in the world. Total investment by NIOC to develop the gas reserves and install the infrastructure to-date is in excess of US$ 1.5 billion.
- Crescent Petroleum through its affiliates has secured long-term agreements for the sale of gas with ultimate end-users in the UAE.
- US $300 Million investment in the gas sweetening plant and the transmission facilities, which are owned by SajGas and UGTC respectively, both wholly owned subsidiaries of Dana Gas PJSC.
- Gas deliveries by NIOC were expected to commence in 2008, however, due to further technical issues, the completion of the Iranian facilities to produce and transport the gas to CNGC was delayed. Recent information from NIOC about the status of the Iranian gas facilities to deliver the gas to Crescent Petroleum indicated further delay.
Crescent Petroleum has historically been pivotal in putting in place the necessary arrangements to facilitate the development and expansion of the gas market in the UAE. Crescent Petroleum and its management have pioneered commercial inter-Emirate gas supply and sales arrangements in the United Arab Emirates, based on gas supplies from Sharjah. Crescent Petroleum’s management concluded the first inter-Emirate onshore gas supply contract from Sharjah for the UAE Federal Ministry of Electricity and Water in 1985, and then in 1986 another contract between the Emirates of Dubai and Sharjah. Subsequently, in 1991, Crescent Petroleum concluded the first offshore inter-Emirate gas sales and purchase agreement through a dedicated pipeline (on a build, own and operate basis) from its offshore Mubarek Facilities to Jebel Ali, Dubai.
Crescent Petroleum has extensive in-house technical skills and operating experience of managing and implementing gas development projects, and is well established in the region to continue to play a key role in the further development of the burgeoning gas market. Crescent Petroleum is thus ideally placed, as supplier, transporter and marketer of gas, to play a significant role in consolidation and expansion of the gas market in the United Arab Emirates, and the wider region, in order to service end-users in electricity and water as well as other industrial sectors.
Crescent Petroleum and its affiliates plan to continue their expansion and participation in the downstream gas and related industrial sectors in order to extract maximum value from the gas chain.