Crescent Petroleum has historically been pivotal in putting in place the necessary arrangements to facilitate the development and expansion of the gas market in the UAE. Crescent Petroleum and its management have pioneered commercial inter-Emirate gas supply and sales arrangements in the United Arab Emirates, based on gas supplies from Sharjah. Crescent Petroleum’s management concluded the first inter-Emirate onshore gas supply contract from Sharjah for the UAE Federal Ministry of Electricity and Water in 1985, and then in 1986 another contract between the Emirates of Dubai and Sharjah. Subsequently, in 1991, Crescent Petroleum concluded the first offshore inter-Emirate gas sales and purchase agreement through a dedicated pipeline (on a build, own and operate basis) from its offshore Mubarek Facilities to Jebel Ali, Dubai.

Crescent Petroleum has extensive in-house technical skills and operating experience of managing and implementing gas development projects, and is well established in the region to continue to play a key role in the further development of the burgeoning gas market. Crescent Petroleum is thus ideally placed, as supplier, transporter and marketer of gas, to play a significant role in consolidation and expansion of the gas market in the United Arab Emirates, and the wider region, in order to service end-users in electricity and water as well as other industrial sectors.

Crescent Petroleum and its affiliates plan to continue their expansion and participation in the downstream gas and related industrial sectors in order to extract maximum value from the gas chain.

Gas demand

The demand in the Northern Emirates gas market has steadily risen year by year, driven by the growth and urbanization of the Dubai and Sharjah Emirates. The primary use for gas is electrical power generation and water desalination, although gas-related industries are also becoming increasingly significant users. The growth in the gas market over the last ten years has averaged around 10% per annum, and is forecast to continue at such high growth rates for the medium term at least. The indigenous gas fields that were discovered and developed in the 1980’s are declining and can no longer meet the increasing gas demand.