Diesel prices up again

The price of diesel in Dubai has gone up by 50 fils, or 3.26 per cent, per gallon as fuel retailers in the emirate continue their policy of adjusting prices upward to match rising international crude prices.

The price hikes by Enoc and Emarat in the last few months have made diesel more than 80 per cent costlier in Dubai than at Adnoc-operated filling stations in Abu Dhabi. Diesel is being sold at Dh15.80 per gallon in Dubai compared with Dh8.60 in Abu Dhabi.

As a result, queues at Adnoc outlets are getting longer. Khalid Hadi, Enoc Group's brand and marketing manager, told Gulf News recently that the company's pricing policy "reflects international prices."
/Gulf News/

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Dubai Supply Authority awards Golar regasification deal

Golar LNG Ltd said it has been awarded a ten-year regasification deal by the Dubai Supply Authority (DUSUP), worth $450 million.
The Norwegian firm said 'Golar Freeze' will now be converted into a Floating Storage and Regasification (FSRU) vessel, and delivered to Dubai during the second quarter of 2010.

'The contract duration is for a period of 10 years with options to extend for up to a further five years,' Golar said.

Following delivery to DUSUP, Golar Freeze will be permanently moored alongside a purpose built jetty within the existing Jebel Ali port, the firm said. (CNN)

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Domestic gas users to benefit from enhanced safety equipment

Following a decision of the Undersecretary of the Ministry of Interior and in conjunction with the Civil Defence, Dubai, domestic gas users will have new cylinder valves with enhanced safety features in place of the old ones.

This is part of an industry-wide initiative born out of extensive research conducted by Emirates Gas, a wholly owned subsidiary of ENOC, along with Emarat Gas Distribution. The complete valve changeover, in the interest of public safety will be executed with immediate effect in Dubai by Emirates Gas in partnership with Emarat.

Emirates Gas has invested in two years of research and consumer trials to design the new flat top compact valve, which offers distinct advantages in terms of safety and convenience against the hand wheel screw type valve currently in use. The advanced design was created specifically for LPG (liquefied petroleum gas) consumers in the Middle East where the gas is widely used for cooking, heating and barbecuing.

The most striking feature of the new valve is its safeguard against all possible kinds of leakages. The short, one-piece valve is made of high quality material capable of withstanding high impact and a new regulator, which can be easily pushed on the cylinder valve outlet.

Major General Rashid Thani Al Matroushi Director General of Dubai Civil Defence and Head of the Executive Committee responsible for laying a structure to enforce the decision, stressed on the importance of all bottling and distribution companies' commitment to the clauses under the Ministry's decision, which requires them to abide by the following procedures: - Use an authenticated regulator from the civil defence.

- Stop the use of spiral regulator in a time frame and action plan that is decided by the committee responsible for that purpose.

- All empty cylinders that are filled up and used by bottling companies should carry the company's name and logo - Not to fill up valves that don?t have the company's name and logo printed on them - Every company should not transport its own cylinders that don't have its name and logo printed on them, whether the cylinder is full or empty. This means that any company that holds such a cylinder in possession will be considered a violation - Fix the cutter and the gas detector to alert in case of gas leakage - Ensure that all maintenance operations are done periodically on gas tools and equipment.

- Efficient monitoring by civil defence to enable each company to inspect its cylinders and perform hydrostatic check on a periodic basis and before bottling and exchange it after its validity expires.

- Civil Defence should implement the appropriate mechanism to ensure the use of the new approved regulators, and initiate an awareness programme to inform nationals and residents to use the authenticated and approved valves and regulators. They should also fix the gas leakage detectors and monitor the connections to check its safety and validity.

- Perform regular checks on restaurants and other public places that use gas for any purpose during appropriate times from time to time to ensure they are using the authenticated and approved regulators and valves and perform a check on the validity of the connections for the smooth flow of the gas.

Al Matroushi added: "This cooperation between the Civil Defence, the bottling companies and companies supplying the cylinders to the general public is crucial in achieving our joint goal of providing safety to the society." "The absence of flat fibre or cork washers also minimises chances of leakage. The washers used in old valves to attach the regulator wears out over time, leading to leakage. It also happens that out of carelessness or distributors oversight, distributors may not replace the washers while changing cylinders and thus the leak may not be fixed in time. The new valves need no washers, thread or spanners, which means the margin of manual error is almost nil," said Hesham Ali Mustafa, General Manager of Emirates Gas.

In addition, the flat top valve has an automatic cut-off mechanism activated in the event of a major leak or snap off in the rubber hose as well as a fusible spindle, which melts to seal off the valve in case of a fire.

Mustafa added that the new valves will also help save precious energy.

"The old adjustable regulators for screw top valves may release up to 1 bar of gas pressure whereas the maximum output required for domestic use is around 30 millibars. The new valves are set to output only 29 millibars as this is the ideal vapour pressure normally required in household appliances. Considering that Dubai alone has 300,000-400,000 domestic gas cylinders in use, the environmental and safety advantages of the new valves is tremendous." Cylinders equipped with the flat top valves can be operated only by a regulator supplied by Emirates Gas or Emarat. Customers will be provided with the new, easy-to-fix, tamper-proof valves when empty cylinders are replaced. It is estimated that, about 1,000 cylinders with new valves will be changed per day by distributors of Emirates Gas and Emarat. These new valves and automatic regulators will have both ENOC and Emarat?s names and logos printed on them.

Saeed Abdullah Khoory, Group Chief Executive, ENOC, congratulated Emirates Gas for designing the new valve and ensuring that the safety of its customers is not compromised in anyway.

"ENOC strives to be the Energy Partner of Choice and this new valve and regulators are an example of our pursuit of quality and excellence, adding value and safety to our customers. This new initiative pioneered by Emirates Gas is a reaffirmation of our commitment to customers and the community," Khoory said.

Jamal Abdul Rehman Al Madfah, Acting General Manager of Emarat said: "The main objective of this initiative is to increase customer safety and protect property. As a socially responsible corporation, Emarat strong believes in community relations and the health and safety of individuals. Therefore our commitment to best quality practices in all our activities and programmes is a top priority for us." WAM

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Enoc petrol stations to dispense CNG soon

Compressed Natural Gas (CNG) will be dispensed at different Enoc petrol stations in the near future, senior officials of the company have confirmed.
Emirates Gas has already carried out a feasibility study for a natural gas pipeline network in the newly developing areas of Dubai and is considering various alternative applications of gas.

With the Roads and Transport Authority (RTA) and Enoc working together in a bid to convert the public transport system from the existing petrol or diesel mode to CNG mode, Saeed Khoory, Enoc Group Chief Executive, said recently that soon the petrol stations would have CNG dispensing machines.

The collaboration between the RTA and Enoc has already resulted in fitting CNG engines on three abras. These abras are presently undergoing trial runs. The RTA has said that if proved successful, the other forms of public transport like buses and taxis would also be installed with CNG engines.

Enoc has one mobile CNG filling station for abra stations.

The alternative fuel substantially reduces exhaust emissions, cutting down pollutants such as carbon monoxide, carbon dioxide, nitrous oxide and other ozone-depleting substances.

Saeed Khoory said, “As a socially responsible company, Enoc is committed to finding ways to combat the ever-increasing problem of pollution. This is a major step towards protecting the environment and enhancing the ecological strength in the UAE.

“We have set a benchmark with Emirates Gas introducing CNG in Dubai by fitting CNG engines on three abras. With the success of the initial trial runs, we are now looking at opportunities to popularise the fuel of the future through development of appropriate infrastructure and encouraging consumers to shift from other fuels to CNG.

“If the taxis and public buses are to run on CNG, we must ensure that there is enough quantity of the gas with us. We are looking at different sources to make sure that there is a continuous supply of CNG.” Source

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Adnoc Distribution to set up 11 natural gas filling stations

Adnoc Distribution has reiterated it is moving forward to setting up 11 natural gas filling stations, eight workshops for converting vehicles to use the Compressed Natural Gas (CNG) as an alternative fuel in Abu Dhabi and five in Sharjah by the end of 2008.

The move is in line with strategic plans of the company to build infrastructure for using the natural gas as alternative fuel for vehicles. The remarks were made at a meeting held Tuesday by the technical committee assigned to implement the use of natural gas as the alternative fuel in Abu Dhabi emirate.

The meeting also examined the reports submitted by competent authorities on plans to convert 20 per cent of the government fleet to use the natural gas by Jan. 1, 2012.

Environment Authority-Abu Dhabi, which took part in the meeting, announced it would study reduction of registration fees or renewal of licenses of firms, whose vehicles use natural gas.
The authority will coordinate with the General Headquarters of Abu Dhabi police to study feasibility of implementing environmental radar in Abu Dhabi emirate. (WAM)

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Gulf Petrochemicals and Chemicals Association opens Second Annual Forum in Dubai

The Second Annual Forum of the Gulf Petrochemicals and Chemicals Association (GPCA) opened in Dubai on 12 December at the Grand Hyatt Dubai Hotel.

The two-day event, which will deal with a range of challenges and opportunities in the region's petrochemical and chemical sectors, was inaugurated by GPCA Chairman, Mr. Mohamed Al- Mady, who is also Vice Chairman and Chief Executive Officer of Saudi Basic Industries Corporation (SABIC). The Forum provides industry experts an opportunity to share key industry insights, experiences, and discuss the global economic outlook at a critical point in the chemical industry cycle.
Addressing the press on the opening day, Mr. Al-Mady said: 'We are confident that the flow of information and exchange of ideas over these two important days will be the basis for excellent networking opportunities and interaction between industry decision-makers and corporate leaders. While the First Annual GPCA Conference was a milestone for us, this year's conference will be a step towards consolidating on our firm foundation, reviewing our achievements during the last year and sharing our vision for the future'.
In his welcome speech on the opening day, Mr. Al-Mady expressed concern over the construction cost bubble that the region is currently experiencing.

'This, I believe is of great concern as capital costs for new projects have 'gone through the roof'. It makes it difficult to achieve acceptable financial targets when capital costs have risen so much. I believe this will lead to some project delays and probably some cancellations over the next few years. In time, this bubble will deflate, as it is not sustainable at present levels'.
'I believe our industry is approaching a period of overbuilding that is accompanied by weaker markets. Simultaneously, we may see slowing of the global economic growth that is driven by a slowdown in the GDP growth in the U.S. Our industry has experienced these periods of over capacity and slow growth numerous times in the past and has worked through them successfully and emerged stronger. I am certain we will do so once more.
'One of the greatest challenges facing the industry is the environmental and health sector of our society. The regulatory environment for the chemical industry is growing more intense. Increasingly government regulators are placing the burden upon chemical producers to provide proof that their products do not harm humans or the environment. This will require our industry to be more pro-active in the future than it has been in the past, and will call for a greater commitment of human and financial resources from our industry. I am confident that our industry can work its way through these issues and provide greater benefits to our society'.
Formed in March 2006, the GPCA has eight founding members including Saudi Basic Industries Corporation (SABIC), EQUATE Petrochemical Co. (EQUATE), Gulf Petrochemical Industries Co. (GPIC), Petrochemical Industries Co. (PIC), Qatar Petrochemical Co. Ltd. (QAPCO), Qatar Vinyl Co. Ltd. (QVC), National Industrialization Company (TASNEE), and Abu Dhabi Polymers Co. Ltd (Borouge).

The GPCA's landmark Second Annual Forum has attracted eminent industry personalities who will share their insights and experiences with some 750 delegates at the conference and exhibition, a near doubling in size from last year. The speakers comprise a remarkable line-up of industry leaders, including Mukesh Ambani, Chairman & Managing Director, Reliance Industries; Ray Wilcox, President & CEO, Chevron Phillips Chemical Company; Andrew Liveris, CEO, The Dow Chemical Company; Peter Huntsman, CEO, Huntsman Corporation; Stephanie A. Burns, Chairman, President & CEO, Dow Corning Corporation; Volker Trautz, President and CEO Bassel Polyolefins and Abdulrahman A. Al-Zamil, Director, Al-Zamil Group; Mohamed Al Mady, Vice Chairman & CEO, Saudi Basic Industries Corporation (SABIC) and Hamad Al-Terkait, President & CEO, Equate Petrochemical Company (EQUATE) Kuwait.

The speakers will cover a range of topics including forging successful strategic petrochemical partnerships, exploring downstream opportunities beyond petrochemicals, talent management and the global challenge of attracting, developing and retaining talent in the chemical industry and the importance of the Middle East to a global corporate strategy.

Commenting on the positive response from the industry to the GPCA's initiatives, Mr. Abdullah Bin Zaid Al-Hagbani, Secretary General of the GPCA said: 'Top executives and experts are increasingly looking at the region as the centre of gravity for the global industry. Part of the reason for the Gulf's's prominence can be attributed to easy access to feedstock, access to the latest technology, and strategic location at the intersection of the Americas, Asia and the rest of the world. The GPCA is taking important steps to boost the region's petrochemicals sectors, and we want to enlighten professionals in our industry through networking events like this Forum, which is the biggest regional gathering of its kind. The response to our inaugural Forum was both gratifying and encouraging'.

The GPCA projects a surge in the export of petrochemicals from the Gulf at more than 50 million tons by 2008. By 2010, petrochemicals industries in the Gulf will grow by another 13%, research statistics revealed. Saudi Arabia, which represents about 80% of the GCC petrochemicals capacity, is rapidly emerging as a global 'hub' - and is expected to be one of the top four global producers within the next five years.
Since its inception, GPCA has crossed many significant milestones including conducting research on the petrochemicals and chemicals sector in the Gulf; organising dialogue between key stakeholders on issues related to industry growth, safety, environment, sustainable development and HR needs. (AME)

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Oil and gas show draws 350 exhibitors

More than 350 exhibitors from 30 countries are showcasing their products and services at an event dedicated to the oil and gas industry that was inaugurated yesterday by UAE Minister of Environment and Water Dr Mohammed Saeed Al Kindi.
The 14th Arab Oil & Gas Show (OGS), which runs until Thursday, is held alongside the 3rd Arab Instrumentation and Automation exhibition, with targets buyers and suppliers from the energy, engineering, construction, manufacturing and communications industries.

"The year-on-year growth of the OGS reflects the enormous business opportunities in the Gulf energy industry..." said Anselm Godinho, managing director of event organiser International Conferences and Exhibitions.
He said the event has been expanded to showcase comprehensive solutions for the exploration, extraction, refinement and transportation of hydrocarbon reserves.
OGS has incorporated a range of seminars and technical workshops to inform buyers of emerging technological trends and provide an overview of new products and services. Source

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Dana Gas achieves revenue of Dh 719 million

Dana Gas has announced Quarterly Revenue of Dh 276 million for the third quarter of 2007, an increase of 15% over the previous quarter resulting in Quarterly Gross Profit of Dh 72 million.

Net Profit for the quarter was Dh 22 Million after adjusting for non-cash depreciation and depletion of Dh 56 million and finance costs of Dh 30 million.
The Company generated total revenue of Dh 719 million in 264 days of production for the nine-month period ended 30 September 2007, with a Gross Profit of Dh 184 million at a gross margin of 46% of net revenue. Dana Gas earned a net profit of Dh 72 million after adjusting for non-cash depreciation and depletion of Dh 170 million and finance costs of Dh 100 million including a one-time transaction fee of Dh 20 million.
With cash and bank balances of Dh 216 million as of 30 September 2007, Dana Gas substantially increased this figure through completion on 31 October 2007 of US$1.0 billion (Dh 3.67 billion) Convertible Sukuk issue, which was its maiden launch into the international capital markets. In spite of the currently challenging credit environment, the Sukuk was favorably received in the international investment community and established many firsts for the Middle East region. The Sukuk will assist the Company in strategic expansions and to pursue identified opportunities with the aim of enhancing shareholder value and providing a material positive impact to its shareholders.
"The Company has achieved a number of major milestones in 2007,"said Hamid Dhiya Jafar, Executive Chairman of Dana Gas.
"Fom the start of the year with the US$ 1.1 billion acquisition of Centurion and important assets in Egypt, followed by the signing of important agreements for the major project in the Kurdistan Region of Iraq, and of course most recently with the success of the US$ 1 billion Convertible Sukuk in international markets, Dana Gas has shown that, within less than two years since inception, it has emerged as an important player in the Region' growing gas business and in the international energy industry. With major projects in the UAE and Northern Iraq coming on-stream early next year, and with the continued support of our founders and shareholders, we look forward to an exciting year ahead for the Company in 2008 and beyond, inshallah." The Group' long-term assets have more than doubled from Dh .0 billion in 2006 to Dh8.2 billion. Total assets of the Group have also increased by 30% to Dh 8.9 bllion during the period, with shareholder equity rising to Dh .88 billion.
During this past quarter, Dana Gas made Southern Egypt' historic first ever commercial oil discovery from its first exploration well drilled in the Komombo Concession. The event was commemorated by a site visit by the Egyptian Minister of Petroleum, Eng. Sameh Fahmy, who named the field "l Baraka" (maning 'he blessing'in Arabic). Oil reserve estimates of the various zones of this discovery are currently being evaluated. Source

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ADGAS awards multi-million dollar contract to MEPI

The Abu Dhabi Gas Liquefaction Company LTD (ADGAS), has awarded a USD610 million contract for Package One of the Offshore Associated Gases (OAG) Project on Das Island to Middle East Projects International (MEPI), a fully owned subsidiary of Technip.
The facility would compress, dehydrate and dispatch offshore gases to the facilities of Habshan, to be processed and provided for local consumption.
The move is part of ADGAS' vision that aspires to play a key role in the UAE energy strategy and to ensure its active participation in meeting Abu Dhabi's future needs of gas. ADGAS had developed its vision and plans, going beyond its traditional role as a gas producer and exporter, and stressing an active participation in the UAE energy strategy.
The project is the first building block that links offshore gas on the one hand, and onshore gases and local market on the other. The gases are received, compressed dehydrated and dispatched by ADGAS through a 30 inch marine pipeline to Habshan facilities to be processed there.
The value of contract, which stands at a Lump Sum Value of US$ 610 Million, covers the engineering, procurement and construction works. It aims at preparing and dispatching the additional quantities of associated, low-pressure gases that would become available at Das Island from ADMA-OPCO when oil production is increased by 25%, from the current level (to around 600,000 BPD).
The project scope covers the engineering, procurement, construction, pre-commissioning, commissioning and the Performance Test Run of the new processing facilities that will compress, dehydrate and dispatch a maximum of 211 MMscfd of additional low-pressure associated gases per day, available from ADMA OPCO on Das Island to Habshan as onshore facility.
The plant is expected to be fully operational towards end of 2009. Source

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Dubai will host Oil & Gas ICT (OT Summit) in November

Dependence of oil and gas industries on communication and information technology has become an essential tool for production in our recent time, commented Khalid Eid, Managing Director of the Dubai - based World Development Forum (WDF), the organizer of the three-day event.
Oil and gas are the backbone of modern era. They are the core of economics for most countries of the region. Hence each step towards the development of the Oil and Gas industry will significantly contribute to economic development and evolution?, said Mr Eid.

Citing statistics of the International Energy Agency, he said that long-term economic growth expectations for year 2005 to 2030 range between 2.8 per cent and 3.8 per cent per annum. It is anticipated that economics of developed countries will witness a growth rate of 5.8 per cent and 3.9 per cent annually from the year 2015 until 2030, he said.
Meanwhile, growth rate for Organization for Economic Co-operation and Development (OECD) will remain 2.9 per cent until 2015, he said. Recent expectations indicate that world energy demand will be increased by 5.1 per cent per annum by the year 2030 compared to earlier anticipations.
Linking various operations in different locations, is one of the major benefit of information technology. For example an offshore engineer in gulf water can view and respond to downhole data in real time from a well in Azerbaijan significantly enhances ongoing operations?, said Mr Eid.
He said " in fact information technology is no more a mere assistant tool for developing economies but rather a leading factor in this domain. Continuous evolution in ICT has led to the development of what is known as Digital Oil Field.
The basic infrastructure of these fields depends on communication and information technology, he said, adding that this concept has proved to be efficient and cost-effective in various oil sectors.
Industry experts always describe the Oil & Gas as highly dependent on sophisticated (ICT) to achieve their business goals. Whether it is the complex analysis of seismic data below a salt dome, or global integration of procurement of goods and services, ICT has become key to business success, said Mr Eid. While other industries have, to an extent, a degree of choice about where they are located, enabling them to take advantage of favorable factors including proven ICT infrastructure; the oil and gas industry is largely confined to sites where raw materials are available and which are often remote.
This emphasises that communication and information technology are the core elements for building up a modern infrastructure for oil and gas sector, he added.
He stressed that the need for securing technical & human expertise in various and remote areas has prompted intentional companies to deploy the concept of the Virtual Organization.
Mr Eid explained that this concept facilitates mobility of data and information from the field in real time, using advanced ICT to be processed in data centers and translated into business intelligence feeding decision support systems which offer the decision maker the "optimal solution" based on the science of " operation research" , ICT made this a reality today.
He clarified that ICT support not only Exploration & Production but also but also support other functions like production monitoring, projects management, transportation, logistic support, marketing in addition to the business communications like voice, email, internet and intranet.
Mr Eid stressed that there is a direct link between technology and oil and gas industry as both seek efficient and cost-effective operation. This interlinked relationship increases the role communication and information technology departments have to shoulder, he urged.
Elaborating on the summit, he said the event aims to shed light on integrated relationship between ICT and Oil industry, discuss challenges facing this industry in the Arab region and . To establish a strategic platform for the IT executives in the Oil, Gas and Industrial sector concerned about emerging trends, technology and opportunities brought by ICT.
OT Summit- Middle East is the only exclusive event dedicated to the Executives of the major Oil & Gas companies in Middle East, and the leading ICT Vendors & Providers to discuss how technology can turn strategic vision into reality.
He mentioned that most of the industry giants already confirmed their participation "ARAMCO, SABIK, ADNOC, Kuwait Oil Company, Qatar Petroleum, Dana Gas are amongst the leading participating companies from GCC and Arab countries" he said.
It is worth noting that the OT summit will be co-located with the Government Technology Summit (GT Summit), which brings together the elite of ICT in Arab Governments to discuss how Technology can help Arab Governments to improve services offered to Citizens, Business and Government. Source

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Dana discovers gas in Egypt

UAE-based Dana Gas said on Wednesday it discovered natural gas in Egypt.Gas from a well drilled at the West Manzala Exploration Concession in Egypt flowed at 16.5 million cubic feet of gas per day, Dana said in a statement. The Dabayaa-1 exploration well also produced 330 barrels of condensate per day, it added. Condensate is a light oil associated with gas production.

Abu Dhabi-listed Dana Gas moved into the Egyptian upstream sector in November, when it became the country's sixth-largest gas producer through the $1.09 billion acquisition of Canada's Centurion International.Dana expects to start production from the Dabayaa-1 well by November, the company's country director for Egypt, Hany Elsharkawi, said in the statement. The firm aims to drill 12 exploration wells in Egypt before the end of the year, it said.Egypt holds Africa's third-largest natural gas reserves after Algeria and Nigeria at 1.89 trillion cubic metres. Source

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ADNOC to introduce green diesel fuel Monday

Green diesel will be available at all ADNOC distribution stations starting from 23rd of this month to substitute the current diesel distributed at the petrol stations .A technical committee was formed to oversee phasing out the use of high sulphur diesel as fuel. The Committee consists of members from the Environment Agency - Abu Dhabi (EAD), Federal Environment Agency (FEA), Takreer, ADNOC Distribution, Department of Transport, General Headquarters of Abu Dhabi Police and the Emirates Standardization and Meteorological Authority. The committee has developed an action plan to minimise environmental, economic, social and health impact of the use of diesel.the action plan has called for the replacement of the currently used diesel with diesel that has Sulphur content of 50 ppm. Later, Diesel that has Sulphur content of 10 ppm will be introduced. The general public will have to have their cars transformed at dedicated workshops to be able to use Green diesel. Green Diesel offers a cleaner alternative as it is less polluting to our environment and emits significantly lower amounts of hydrocarbons, particulates and carbon dioxide. Source

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Dana Gas Extraordinary General Meeting approves convertible Sukuk issue

Dana Gas PJSC, the Middle East's first regional private-sector natural gas company, held an Extraordinary General Meeting (EGM) today during which the shareholders unanimously approved the issue of a convertible sukuk for USD 1 billion which can be upsized.The Extraordinary General Meeting was chaired by H. E. Sheikh Ahmed Bin Sultan Al Qassimi, Deputy Ruler of Sharjah and Honorary Chairman of Dana Gas. Dana Gas had previously received the necessary approvals from the UAE Securities and Commodities Authority (SCA). Application has been made for the sukuk to be listed on the London Stock Exchange on the Professional Securities Market. Source

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UAE short of gas in summer heat

As summer temperatures rise, power stations are devouring gas supplies in the United Arab Emirates and leaving industry in some areas short.Residents cranking up air conditioning units are increasing the call on gas-fired power plants and straining supply."Power plant gas demand can be several times higher in the summer than in the winter," said one senior energy industry executive based in the UAE. "The country is short of gas."

The seasonal change is exacerbating an already tight supply not just in the UAE but across the Middle East, where economic expansion has led to rapidly rising demand for natural gas for electricity, smelters and petrochemicals.In Ras al-Khaimah, an emirate in the north of the UAE, gas supplies available for industrial use have dwindled as the country's power generation takes priority.Government-owned Ras al-Khaimah Gas Company (Rakgas) has an interruptible contract with Dolphin Energy to import around 40 million cubic feet per day(cfd) of gas from Oman.But Omani imports into Ras al-Khaimah have fallen to just 3 million cfd as the UAE's Federal Electricity and Water Authority (FEWA) takes the Omani gas for power generation."We are going through a tough summer for gas, just as we did last year," Ras al-Khaimah Gas Company (Rakgas) Chief Operating Officer Ruurd Abma told Reuters last week.Industrial users such as cement producers in Ras al-Khaimah and the emirateof Fujairah are turning to coal as gas runs short.In the largest emirate and the capital of the UAE, Abu Dhabi, gas used for reinjection in oilfields has been diverted to power plants.The United Arab Emirates holds the world's fifth largest gas reserves but has failed to exploit them quickly enough to meet spiralling demand.Relief should come when Dolphin Energy begins importing gas into the UAE from Qatar. Dolphin is due to start up its Qatari gas processing plant before the end of the month, industry sources said last week. Dolphin aims to import 2 billion cubic feet per day by the end of the year.Dolphin supplies will boost gas available for domestic sales by nearly 50 % from last year's levels. Abu Dhabi is also evaluating bids for a tender to develop the country's massive reserves of sour gas. The $10-billion project is expected to boost domestic supplies by at least a billion cubic feet per day (cfd).RAS AL KHAIMAH SUPPLYRakgas expects its supply to improve next year as it is due to start importing 80 million cfd of gas from the offshore fields of neighbouring emirate Umm al-Quwain from January 1, 2008.Sinochem subsidiary Atlantis will develop the offshore fields and is laying a 75 km pipeline into Ras al-Khaimah to deliver the gas.Rakgas is also expanding its gas processing plant to process 150 million cfd, up from current capacity of 60 million cfd, Abma said.

Rakgas also has a contract to take delivery of around 100 million cfd from Dana Gas in the neighbouring emirate of Sharjah.That deal is for a share of gas to be distributed by Dana under an import contract with Crescent Petroleum from an offshore Iranian oilfield.But a year after the flow should have started, Iran is still building the gas platform. FEWA and Sharjah were also suffering less gas supply than anticipated due to the delay. Source

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Dana Gas Plans Sukuk Issue to Fund Growth Strategy

Dana Gas, the Middle East's first regional private-sector natural gas company, has called an Extraordinary General Meeting (EGM) of its shareholders to approve the issue of a sharia-compliant bond in the form of a convertible sukuk. The sukuk issue is part of Dana Gas' strategy to put in place a more efficient capital structure through broadening and diversifying the financing channels for the continued growth and expansion of the Company's activities. Dana Gas is seeking approval from its shareholders to raise at least US$1 billion in new funds through this convertible sukuk bond issue, after receiving the necessary approvals from the UAE Securities and Commodities Authority (SCA).

Dana Gas is in the process of appointing Lead Managers for the issue of the sukuk and is in discussions with several major international banks that have shown great interest in leading the issue. The final details and terms of the proposed sukuk will be established once approval has been obtained at the EGM from the shareholders, which is scheduled on Tuesday 26 June 2007, or Tuesday 3 July 2007 if quorum is not reached at the first meeting.A sukuk is a Sharia compliant, fixed term, debt obligation which could ordinarily be converted into shares of the issuer at the election of the sukuk investor and, under certain conditions, at the election of the issuer of the sukuk. The issuer of the sukuk is normally required to pay a periodical coupon "Profit Rate" until the maturity of the sukuk, which is likely to be five years. Worldwide Islamic banking assets currently total around US$ 500 billion and are growing at over 15 per cent per annum, with Islamic banks and financial institutions managing over US$ 250 billion of assets and a further US$ 200 to US$ 300 billion managed by the Islamic subsidiaries of international banks.Dana Gas is currently undergoing a regional expansion in all sectors of the growing natural gas sector across the Middle East. In January of this year the Company completed the US$ 1.1 billion acquisition of Centurion Energy, making it Egypt's sixth largest gas producer and marking its entry into the exploration and production sector. In April, Dana Gas also concluded important agreements for gas projects with the Kurdistan Regional Government of Iraq, with a first phase investment of approximately US$ 400 million.The Company was recently granted an award by the Abu Dhabi Stock Market (ADSM) for excellence in corporate disclosures and transparency. Source

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Dana Gas Achieves First Operating Profits

Dana Gas, the Middle East's first private sector regional natural gas company, has achieved its first quarter of operating profits, with total revenues for the quarter ended 31st March 2007 rising to AED 202 million from 80 days of gas production operations, resulting in Gross Operating Profit of AED 105 million and Cash flow from Operations of AED 68 million.The First Quarter of 2007 saw Dana Gas complete the US$1.1 billion acquisition of Centurion Energy International in early January, establishing Dana Gas as the 6th largest gas producer in Egypt and launching the company into the exploration and production sector of the Middle East's natural gas industry. Dana Gas also built upon this position in April last month by signing important gas agreements with the Kurdistan Regional Government of Iraq. The Long-term Assets of the Company grew by nearly 100% from AED 4.0 billion to AED 7.8 billion during the first quarter of 2007, with Total Assets increasing 28% to AED 8.8 billion and Shareholders Equity rising to AED 6.84 billion. Net profit for the quarter stood at AED 21 million, after one-time transaction fees of approximately AED 20 million and non-cash depreciation charges, including those related to the Centurion acquisition."We are pleased with the first operating results of the Company - in just over a year since its formation, Dana Gas has already established itself as an important regional player in the Middle East's rapidly growing natural gas industry," said Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas. "Last year was the foundation year for the Company in which Dana Gas grew its organization, its international office network, and its business development activities in all areas of the gas sector across the Region.This year, 2007, is a year of major investments and expansion of our operations in Egypt, Northern Iraq, the UAE, and elsewhere, in the exploration and production of gas, through its processing and transportation, to its marketing and utilization as a feedstock of value-adding industry. We look forward to continued future growth and expansion in the years ahead." Dana Gas recently held its first Annual General Meeting (AGM) and Extraordinary General Meeting (EGM), where all the resolutions and recommendations were approved unanimously by the Company's shareholders. The shareholders were presented with the Director's Report, which outlined the major milestones achieved by the company in its first year of establishment, and its growth into an international energy company with the services of over 300 professional staff, offices in Canada, the UK, Egypt, Saudi Arabia, and soon Iraq, and with business activities across the wider Middle East region, including North Africa and South Asia.

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RTA Signs Deal with Emirates Gas for Supplying

The Roads and Transport Authority (RTA) signed an agreement with Emirates Gas, a subsidiary of Emirates National Oil Co. Ltd (ENOC) to convert three engines of abras and supply them with the compressed natural gas (CNG) instead of diesel in accordance with the technical standards set on this regard.The agreement has been signed on behalf of RTA by Mattar Al Tayer, Chairman and Executive Director, and on behalf of Emirates Gas by Hussain Sultan, Chief Executive of ENOC Group.This agreement stems out of desire of RTA and Emirates Gas to conduct experiments and studies about operating abras on compressed natural gas (CNG) instead of diesel, due to the enormous benefits of using natural gas in terms of economic and environmental aspects and thus slashing the cost of fuel and reducing the environmental pollution.According to the agreement, RTA will specify three abras for operation on natural gas after securing agreements with their respective owners. Continue to the full story from source.

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Dana Gas achieves key milestones in first year

Dana Gas PJSC, the Middle East's first private sector regional natural gas company, outlined the key business achievements made by the company in its first year since establishment, at the Annual General Meeting (AGM) that took place yesterday in Sharjah."Just over a year ago, Dana Gas was born as a new concept, with a vision to be the first private-sector regional gas company in the Middle East," said Hamid Dhiya Jafar, Executive Chairman of Dana Gas, in the Chairman's Report to the AGM. "In the short period since its formation, the Company has achieved many important milestones: Dana Gas has grown from a small team here in Sharjah to an international energy company with the services of over 300 professional staff, offices in Canada, the UK, Egypt, Saudi Arabia, and soon Iraq, and with business activities across the wider Middle East region, including North Africa and South Asia, and in all aspects of the growing natural gas sector, from exploration and production of gas, through its processing and transportation, to its marketing and utilization as a feedstock of industry." Among the highlights of the company's first year activities which were reported at the meeting included: successful completion of construction and interconnection of facilities of the UAE Gas Project in preparation for processing and transmission of imported gas supplies from NIOC later this year, the US$ 1 billion acquisition of Centurion Energy International which launched Dana Gas into the exploration and production business as the 6th largest gas producer in Egypt, acquiring a majority shareholding of an important Bahraini gas company leading a project to develop the Gulf of Suez Gas Liquids Plant in Egypt in partnership with the Egyptian National Gas Company, partnering with Emarat in the UAE to build and operate the region's first common user gas pipeline with capacity of 1 billion cubic feet per day, partnering with a leading international energy technology company to build a network of regional gas terminals, starting in Pakistan, successfully securing rights to develop two of Iraq's major gas fields in the Northern Kurdistan Region, and launching the Company's first "Gas City" development in the Region. Dana Gas recorded a Net Profit of Dh 812 million for the period ending December 31st, 2006. The AGM also heard details of the company's recruitment strategy to build an organization of world class energy industry professionals, and details of the company's financial position and major planned investments for the coming year in the Middle East's gas sector through a combined growth strategy including establishing partnerships: "In addition to our two-pronged parallel growth strategy of important acquisitions as well as development of grass-roots new projects, an important part of our approach in Dana Gas is partnering with the best companies from the region and internationally for mutual benefit." Added Jafar.The AGM also approved the audited accounts for the period ended December 31, 2006, and the auditors' report. Source

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Dana Gas signs agreement with KIOEC

Dana Gas, the Middle East's first regional private-sector natural gas company, announced that it has signed a farm out agreement with Kuwait International Oil and Environment Company (KIOEC), a subsidiary of TAQAT Holding and Gulf Oil Investments, to participate with a fifty percent working interest in Dana Gas' Komombo Concession, located in the Western Desert, Upper Egypt and approximately 800 Km south of Cairo. Dana Gas will remain as operator of the concession. The concession covers nearly 23,000 sqkm and is currently in the second exploration period of three years duration. The Komombo Basin is considered to be lightly explored frontier basin with only three wells drilled to date. However, drilling results to date have proven a working hydrocarbon system with significant exploration potential.

The agreement was signed by Dr. Hany Elsharkawi, Dana Gas Egypt Country Manager, and Eng. Badr Al Yehya, Chairman of KIOEC, in a ceremony in Cairo. Technical evaluation of the concession to date includes the interpretation of geological and geophysical data and the acquisition of 516 Kms of 2-D seismic, resulting in the identification of drillable prospects and four addition leads. Drilling is scheduled to commence in mid 2007. Source

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E.ON Ruhrgas Establishes Representative Office for the Middle East and North Africa

E.ON Ruhrgas will shortly open up representative offices for the Middle East and North Africa (MENA) in Dubai, United Arab Emirates, and Doha, Qatar. They will be headed by John Roper (47), an experienced oil and gas industry executive, who will manage and coordinate the company's interests in the region and drive projects aimed at bringing Liquified Natural Gas (LNG) to Europe and securing operated upstream assets. Through this initiative E.ON Ruhrgas is confirming its commitment to the MENA region and to the LNG business.
John Roper, joins E.ON Ruhrgas with more than 25 years of experience in the international oil and gas industry, notably in the Middle East, North Africa and the Caspian Sea region. He is a member of several international energy industry organisations and has, developed and managed various international projects. In his last position, John Roper was Regional Vice President and General Manager of Petro-Canada in Dubai.
By entering the LNG business, E.ON Ruhrgas is developing new supply sources to further improve the security of natural gas supplies to Europe. The Middle East and North Africa have substantial gas reserves. Iran accounts for some 15 % of the world's proven recoverable gas reserves, Qatar has around 14 % while Algeria, Egypt and Libya have 4 %. E.ON Ruhrgas has already signed a Memorandum of Understanding (MoU) with the Algerian company Sonatrach on cooperation in LNG projects. E.ON is planning to build new LNG receiving terminals, including one at Wilhelmshaven on the German North Sea coast and one on the Croatian island of Krk.

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