Operations
UAE

UAE Gas Project

The UAE Gas Project involves the purchase of 600 MMscf/d imported gas for transportation, processing and sale in the UAE. Gas is received at the offshore riser platform, connected to the Mubarak oil field infrastructure and then transported via a 30” pipeline to the SajGas processing plant in Sharjah, where the gas is processed to sweeten it (remove the sulphur) and to extract natural gas liquids (condensate) for sales within the UAE. The offshore riser platform and pipeline are owned by the United Gas Transmission Company, which is wholly owned by Dana Gas as is the SajGas processing plant.

CNGCL (in which Dana Gas owns a 35% equity share) is the gas marketing company which was set up to sell the gas to end users in the UAE and to market the liquids and sulphur products to regional and international customers.

The gas was never supplied by NIOC when the project was due to start up in 2005 accordingly The Gas Sales & Purchase Contract between Dana Gas’ partner Crescent Petroleum and the National Iranian Oil Company (NIOC) for the supply of gas has been the subject of international arbitration since June 2009.  In 2014 The Tribunal ruled in favour of Crescent finding NIOC to be in breach of the gas supply contract and liable for damages, following which further hearings have been taking place. The last hearing was in October 2017 was to determine the amount of  damages (to cover the period from 2005 up to 2014) payable by NIOC, and the final judgement was expected within 12 months of that hearing. To date, the Tribunal has not given its judgement. In 2019 Dana Gas was informed that Crescent Petroleum, commenced a second arbitration with a new Tribunal, to address the claims for damages from 2014 until the end of the contract period in 2030.