The Dubai Supply Authority (Dusup) is to develop a floating LNG (Liquefied Natural Gas) regasification facility at the DP World Jebel Ali terminal. The new facility will supplement the Emirate’s existing supplies of natural gas during summer peak demand.

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.

The Golar LNG Company will convert the LNG carrier, ‘Golar Freeze’, into a floating storage and regasification unit (FSRU) to be chartered by DUSUP and moored offshore within the 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 Dubai’s gas pipeline network to industrial customers. The regasification capacity of the ‘Golar Freeze’ will be three million tonnes per annum, equivalent to 400mmscf/d of natural gas. First gas is expected during 2010.

In parallel, Shell Western LNG and DUSUP have signed a Sales and Purchase Agreement for the short and long-term supply of LNG to be supplied from Shell’s global portfolio, primarily Qatar.

Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of DUSUP, said, “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. Dubai will also benefit from our peak summer demand being counter-cyclical to the global winter demand peak in the LNG market."

Linda Cook, Executive Director of Shell Gas & Power, said, “Dubai has many visionary projects and, I think, in the field of energy this counts amongst them. It will deliver local and global environmental benefits, and diversify Dubai’s sources of energy supply. Shell is pleased to have been selected by Dubai to help with this project.”

The project will assist in alleviating the emissions of key air pollutants such as sulphur oxides, nitrogen oxides and particulates.

Geology Day revisited in Al-Ain

The Geology Department at the UAE University organised a Geology/Oil Industry Day in May. Held at the Rotana Hotel in Al Ain, the day featured exhibits from 22 oil and oil-related companies and technical papers were presented by industry experts and university academics.

Dr Ahmed Murad, Head of the Geology Department of the UAE University and Head of the organising committee of the Geology/Oil industry Day, said, “This event is an annual event which provides an opportunity for students to meet, interact and enrich their knowledge with oil industry professionals, and to understand the important role geology plays in the industry.”

Shell was one of several sponsors of the event, and one of the distinguished guest speakers of the day was John Warren, Shell Professor in Carbonate Studies, Sultan Qaboos University, Muscat.