LNG

The Dolphin Energy natural gas pipeline from Qatar to the United Arab Emirates experienced a major technical outage for several days last month and the Qataris reportedly made LNG supplies available to its neighour if needed and kept the impact to a minimum as a sign of improving relations.

The report by Qatari television quoting news agencies said the pipeline had now been fixed and pipeline gas supplies were flowing as normal.

The pipeline is 364 kilometres in length and supplies 2 billion cubic feet of natural gas per day from Qatar’s North Field to the UAE. The North Field is also the source of Qatar's annual LNG outut of 77 milliion tonnes per annum.

The Qatar-UAE pipleine is owned by Dolphin Energy, a subsidiary of the UAE oil and gas company, Mubadala Petroleum, and with minority stakes held by French major Total and Occidental Petroleum of the US.

“The pipeline encountered a major failure in Qatar’s territory in mid-April resulting in a shutdown of all of its facilities for several days,” said the Qatari TV report.

Analysts said the report was seen as Qatar saying to its Arab neighbours in the Gulf Cooperation Council (GCC) that it can be relied upon in a crisis and to meet contracts for energy supplies.

According to the report, the pipeline shutdown caused significant curtailment of gas supplies to the UAE for several days and Qatar Petroleum helped Dolphin Energy by supplying some repair materials and offering LNG supplies to make up for any shortages.

The GCC members are UAE, Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. Since the dispute began no Qatari LNG cargoes were to be delivered to the UAE and Kuwait because of GCC transport sanctions against Qatar.

The embargo against Qatar was formally imposed in June 2017, though the Qataris said at the time they would not close the Dolphin pipeline, which would cause major disruptions to the UAE’s natural gas system.

The Gulf kingdom Bahrain, set to start LNG imports soon, has signed an exploration and production sharing agreement with Eni, the Italian energy company with a recent record of huge natural gas discoveries offshore Egypt and Mozambique.

Qatar Petroleum said all the contracts for the expansion project at the Ras Laffan complex would be awarded by the end of 2018 while the new 100 million tonnes per annum production target would be met by the end of 2023.

Qatar Petroleum President and Chief Executive Saad Sherida Al-Kaabi said he was looking ahead to a no-nonsense future for the combined companies of Qatargas and RasGas after the one-year completion of a corporate union.