Gas Commercialisation Steps

Gas Commercialisation Steps

In 1985, Crescent Petroleum arranged the first ever commercial, inter-emirate onshore gas supply contract in Sharjah for the UAE Federal Ministry of Electricity and Water and established the first offshore inter-emirate gas supply and sales agreement between Sharjah and Dubai by building a dedicated 92 kilometres offshore pipeline and associated central gas processing facility from its Mubarek field in Sharjah to land at Jebel Ali in Dubai. Today, with the new paradigm shift in oil prices, the gas business in the Arabian Gulf is set on a rapid and important growth path, providing a booming market for the gas supplies necessary to fuel power plants, and the rapidly growing sector variety of gas-related industries. Crescent Petroleum’s pioneering role in the gas market led to the formation of a gas marketing company under the name of Crescent National Gas Corporation (CNGC) ready to implement the UAE Gas Supply Project before it stalled. CNGC’s intended purpose was:

• Transmission of sour gas, under a long-term agreement with United Gas Transmissions Company (UGTC), a wholly owned subsidiary of Dana Gas PJSC.
• 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 (sulphur being a by-product).
• Processing of the sweetened rich gas to denude and extract propane, butane and condensate products for utilisation at an existing LPG plant at Sajaa.
• Selling 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.

Crescent Petroleum continued its pioneering role in 2005 by playing an instrumental role in establishing Dana Gas which trades on the Abu Dhabi Securities Exchange and is the first publicly listed energy company in the region. At the time, the IPO had a demand of AED 290 billion on a public offering of AED two billon. Crescent Petroleum is the largest shareholder of Dana Gas and this allows us further participation across the full gas and value chain. In 2007, Dana Gas completed the $1 billion acquisition of Toronto Stock Exchange listed Centurion Energy acquiring assets in Egypt, Tunisia and Nigeria. Today, Dana Gas is one of the largest independent gas producers in Egypt thereby expanding Crescent Petroleum’s footprint into this important North African country.

In 2008, Crescent Petroleum and Dana Gas established Gas Cities Ltd as a 50-50 joint venture to develop gas-intensive industrial cities in the region in line with our commitment to making our shared energy future more sustainable. The Gas Cities concept involves the clustering of energy-intensive industries, which in turn delivers significant efficiency gains by allowing for the sharing of utilities and infrastructure, all powered with clean natural gas.

Further example of Crescent Petroleum’s pioneering role in gas commercialisation was the Gulf South Asia Gas Project (GUSA). GUSA was a conceptual study launched by Crescent Petroleum in 1990 as the first workable project for producing, transmitting by pipeline and delivering natural gas from Qatar to Pakistan and eventually other parts of the South Asia.