Dubai, Shell to build LNG floating regas terminal
Posted: 21 April 2008
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Government-owned Dubai Supply Authority (DUSUP) will develop a floating liquefied natural gas (LNG) regasification facility at the DP World Jebel Ali Terminal in Dubai, chooses Shell as the advisor and main supplier, the company has announced.
The new facility will supplement the emirate’s existing supplies of natural gas during summer peak demand, delivering environmental and security of energy supply benefits.
DUSUP has selected Shell as adviser and project manager for the development phase. Shell will also be the main LNG supplier and will continue to provide advice to DUSUP once the facility is completed.
Under a signed a Sales and Purchase Agreement, joint ventures Qatargas and Shell is to supply LNG to Dubai for an approximate term of fifteen years. The LNG will be supplied into the DP World Jebel Ali, Dubai LNG terminal that will be capable of receiving the cargoes using the new Q-Flex class of vessels via a Floating Storage and Regasification Unit.
The LNG will be provided from the Qatargas 4 project in Qatar and shipped to Dubai LNG receiving terminal upon the start-up of commercial operations of these facilities.
Golar Freeze, an existing LNG ship, will be chartered by DUSUP from Golar LNG Company and converted into a Floating Storage and Regasification Unit to be moored offshore within DP World Jebel Ali Terminal.
LNG ships will moor alongside the Golar Freeze to offload their cargoes. Gas will be piped through a subsea pipeline from the Golar Freeze into the Dubai natural gas pipeline network to industrial customers, the company said.
The regasification capacity of the Golar Freeze will be 3 million tonnes per annum, equivalent to 400 mmscf/d of natural gas.
First gas is expected from Qatargas 4 in 2010. It will be delivered during the regional summer period for the duration of the contract.
“Energy demand is growing rapidly in Dubai because of the strong growth of our economy. Access to the global LNG market will help Dubai to meet peak summer demand in a more sustainable way, reducing emissions and improving local air quality,” said H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DUSUP.
“ Dubai will also benefit from our peak summer demand being countercyclical to the global winter demand peak in the LNG market.” |
