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Dubai: The Abu Dhabi National Oil Company (Adnoc) and Dolphin Energy on Tuesday signed a long-term agreement for Dolphin to lease and operate Adnoc's Eastern Gas Distribution System (EGDS).
This pipeline network will be managed by Dolphin Energy for 25 years.
The EGDS is currently used to supply gas to Adnoc's customers in Abu Dhabi and Dubai and will be leased by Dolphin to deliver the company's processed gas from Qatar to customers across the UAE, and shortly to Oman.
The lease agreement replaces a temporary access agreement and interim transportation agreements with Adnoc.
The EGDS lease agreement also specifies a direct swap arrangement where Dolphin will deliver gas to Adnoc's customers on behalf of Adnoc and Adnoc will provide gas to Dolphin's customers on behalf of Dolphin.
The lease agreement was signed at Adnoc's Headquarters by Yousuf Omair Bin Yousuf, CEO of Adnoc and Secretary General of the Supreme Petroleum Council, and Ahmad Ali Al Sayegh, CEO of Dolphin Energy.
Bin Yousuf said: "Adnoc, as the pioneering oil and gas producer in Abu Dhabi, is pleased to have established a long term yet flexible agreement with Dolphin Energy - one that will be of direct benefit to our customers and to consumers."
Al Sayegh said: "We are grateful to both Adnoc and Gasco for their support at every stage of Dolphin's involvement with the EGDS. This lease agreement enables Dolphin to directly manage every link in its value chain, from gas production offshore Qatar through processing, transport via subsea pipeline and overland distribution."
Dolphin Energy was created to develop substantial energy projects throughout the GCC and to create long-term economic wealth and new business opportunities for GCC citizens, far into the future.
It's major strategic initiative, the Dolphin Project, involves the production and processing of natural gas from Qatar's North Field, and transportation of the dry gas by sub-sea export pipeline from Qatar to the UAE, which began in July 2007.
Long term customers have signed a gas supply agreement with Dolphin Energy for 25 years.
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