Crescent Petroleum gas supplies

Crescent Petroleum developed its deep (14,000 ft.) offshore gas reservoir in the late 1980’s with the drilling of the Thamama reservoir in the Mubarek Field and the installation of remote unmanned well head platforms. A purpose-built central gas processing facility was installed in the early 1990’s, and gas export to Jebel Ali via the 92 km offshore pipeline was constructed by Crescent Petroleum and commenced operation at that time.

SCHEMATIC OF CRESCENT PETROLEUM GAS PROJECT

The supply of gas by pipeline from the vast resources of neighbouring countries is the obvious and most competitive external gas source from which to satisfy the rising local demand within the UAE. Crescent Petroleum formed a gas marketing company, Crescent National Gas Corporation (CNGC) to meet the increasing Northern Emirates gas demand and oversee the merchant operations. Crescent Petroleum owns 65% of CNGC with the balance held by Dana Gas PJSC.CNGC’s operations involve:

• Transmission of sour gas, under a long term agreement with United Gas Transmissions Company(UGTC), a wholly owned subsidiary of Dana Gas PJSC. UGTC owns a 52 km, 30” diameter subsea pipeline from a Riser Platform (adjacent to Crescent Petroleum’s existing offshore facilities) to landfall at Hamriyah, Sharjah and a 30 km, 30” diameter onshore buried pipeline from Hamriyah to Saja’a.
• Sweetening of the sour gas under a long term agreement with Sajaa Gas Private Limited Company (SajGas), a wholly owned subsidiary of Dana Gas PJSC. SajGas owns a sweetening plant which has an initial design capacity of 600 million cubic feet of gas per day.
• Processing of the sweetened rich gas to denude and extract propane, butane and condensate products utilizing an existing LPG plant at Sajaa.
• Sale of end-user quality gas under long term gas sales agreements to existing major governmental water and power utilities (which include FEWA and SEWA), and marketing and sales of gas to new industries that are being established at Hamriyah Free Zone.
• Marketing and sale of LPGs.
• Marketing and sale of extracted condensate using existing condensate storage and loading facilities located at Hamriyah, Sharjah.
• Marketing and sale of sulphur to regional markets.
• Transportation of sulphur under a long term agreement with Gulftainer Limited of Sharjah, in liquid and pastille form, to the Hamriyah Port from the gas processing plants.

• UAE Gas Supply Project involves the ownership, transportation, processing, distribution, marketing and sale of natural gas and petroleum products.
• Crescent Petroleum is a gas resource owner and has rights to existing and future gas supplies, including a supply of gas underpinned by a 25 year agreement with National Iranian Oil Company (NIOC). NIOC is the second largest gas resource holder in the world. Total investment by NIOC to develop the gas reserves and install the infrastructure to-date is in excess of US$ 1.5 billion.
• Crescent Petroleum through its affiliates has secured long-term agreements for the sale of gas with ultimate end-users in the UAE.
• US $300 Million investment in the gas sweetening plant and the transmission facilities, which are owned by SajGas and UGTC respectively, both wholly owned subsidiaries of Dana Gas PJSC.
• Gas deliveries by NIOC were expected to commence in 2008, however, due to further technical issues, the completion of the Iranian facilities to produce and transport the gas to CNGC was delayed and is now expected to start up in the 2nd half of 2010.
• Crescent Petroleum has been instrumental in establishing Dana Gas PJSC, which is an Abu Dhabi listed public joint stock company with an issued share capital of AED 6 billion. Crescent Petroleum is the largest shareholder in Dana Gas.