Dolphin Energy's Dolphin Gas Project has been the largest single energy initiative ever undertaken in the Middle East. Meticulously planned, Dolphin's activities make up a complex, highly efficient value chain - unique to the industry in the Arabian Gulf. The overall investment in constructing the entire Dolphin Gas Project - wells, sealines, processing plant, export pipeline and receiving facilities - has made it one of the largest energy-related ventures ever undertaken in the region.
Dolphin now produces raw gas from its 24 wells in Qatar's North Field. It processes this gas at its brand-new, dedicated Gas Processing Plant in Qatar's Ras Laffan Industrial City. It then transports the refined methane through the 48 inch, 364 km subsea export pipeline (largest and longest in the Middle East) from Qatar to Dolphin's Gas Receiving Facilities at Taweelah in Abu Dhabi.
In Qatar itself, valuable byproducts are meanwhile being produced during processing: ethane, condensate, propane, butane. The ethane is supplied to Qatar Petroleum on long-term contract and the other products are being sold on international term and spot markets, in significant quantities.
As the company's first gas arrived in the UAE, Dolphin's Chairman, HH Sheikh Hamdan Bin Zayed Al Nahyan, Deputy Prime Minister of the UAE, said: "This achievement is historic as well as highly important." He added, "It signifies that the vision of our late President, Sheikh Zayed Bin Sultan Al Nahyan has been realised. It also demonstrates the commitment to the venture of their Highnesses Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi and Sheikh Hamad Bin Khalifa Al Thani, the Emir of the State of Qatar. It particularly results from the support of His Highness the Crown Prince of Abu Dhabi, Sheikh Mohammed Bin Zayed Al Nahyan."
He also explained: "The entire Dolphin value chain is now functioning, as we have long envisioned and planned. We artherefore managing and supplying our own gas to our contracted customers, controlling every stage of the process." In the meantime, the next challenge would be to carefully ramp up production, until reaching targeted pipeline throughput of 2 billion standard cubic feet per day in early 2008.
The Partners
Dolphin Energy was established in March 1999 as an initiative of the Government of the UAE Emirate of Abu Dhabi. The founders had always conceived Dolphin as a force for international cooperation – one that would unite the vision and resources of the region with multinational capital and expertise. Total of France was accordingly invited to become a shareholder in Dolphin Energy during 2000. After a further selection process, Occidental Petroleum of the USA became the company’s second international partner in 2002.
The three Dolphin Energy Limited shareholders are Mubadala Development Company with 51 percent, and Total and Occidental Petroleum with 24.5 percent each. Mubadala Development Company is wholly owned by the Government of Abu Dhabi.
The Growing Dolphin Pipeline Network
Dolphin Energy entered the business of gas supply in January 2004, when it commissioned the natural gas pipeline that connects Al Ain with the UAE East Coast Emirate of Fujairah. The 24 inch, 182 km pipeline supplies gas to the power and desalination plants in Fujairah of the Union Water & Electricity Company (UWEC), to the ultimate benefit of hundreds of farmers and scores of inland rural communities.
Initially all the gas being delivered to UWEC has come from Oman via a tie-in on the UAEOman border near Al Ain. From early 2008, Dolphin will 'reverse the flow' and will thereafter supply Oman directly with up to 200,000 scf/day of its gas from Qatar, which will also reach Fujairah via Dolphin's Eastern Gas Distribution System (EGDS) and Al Ain.
Dolphin Energy supplies all its customers with gas through its Taweelah Receiving Facilities in Abu Dhabi. Some of this gas goes direct to neighbouring power plants. The majority of the gas is being supplied to other parts of the UAE, using Dolphin's EGDS.
The EGDS has been upgraded by Dolphin during 2006 and 2007 as part of a long term lease agreement with Abu Dhabi National Oil Company (ADNOC).