RAK to receive gas from Oman, UAQ
Posted: 26 February 2008
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The emirate of Ras Al-Khaimah is spending about $100 million to meet domestic gas demand by importing additional supply from cross-border neighbour Oman and next-door emirate Umm Al Quwain according to a senior official.
Ras Al-Khaimah (RAK) needs 250-350 million standard cubic feet (mmscf) of gas daily to fuel its power-intensive industry.
“We are currently investing more than Dh360 million in the infrastructural needs of the gas sector to meet the increasing industrial needs in the emirate, which is currently witnessing a boom,” Ruurd Abma, chief operating officer, RAK Gas Commission, said during an energy conference in Abu Dhabi.
He said the investment will be used to build a network of pipelines as it expects gas to flow from Oman’s West Bukha offshore fields and to pipe gas from Umm Al-Quwain’s gas fields.
Umm Al-Quwain is expected to transport 80 mmscf by this year after a 72 km pipeline was constructed to link the neigbouring emirates, while Oman’s West Bukha field is expected to pipe 40 mmscf by April, Abma said.
“We in Ras Al-Khaimah want to get more gas, and how do we get it. Another thing is we want to increase security, supply and security is also an important issue here,” he said.
RAK’s gas demand is estimated at 300 million to 350 million cubic feet a day as it tries to sustain its industries, particularly the cement production companies, which is the emirate’s important energy consumer. It exercises flexibility by resorting to diesel fuel, heavy fuel or coal when gas supply is not enough.
Abma also hinted that RAK is interested of additional supply from Iran. RAK hopes to extend the pipeline to receive gas from Iran’s Hengam, a joint field, which is known as West Bukha in Oman.
“It would be the easiest thing to drill on the Iranian side and pipe the gas through to Ras al-Khaimah,” said Abma.
“Talks are still at a preliminary stage. There are political considerations and the terms of oil and gas deals with Iran aren’t so attractive,” he told reporters on the sidelines of Gas Arabia 2008.
Abma added the shortage will also be covered by supply agreements with producers such as Dolphin Energy Limited which he did not specify.
He also cited LNG projects under way as it maintains its gas exploration venture in Tanzania.
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