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UAE's Adgas to export LNG to Dabhol by 2002

The United Arab Emirates-based Abu Dhabi Gas Liquefaction Limited will start exporting liquefied natural gas to the Dabhol Power Company of India by 2002.

The company will export LNG at an annual contractual rate of 480,000 tonnes for a 20-year period in accordance with the conditions of an agreement signed with US major Enron, which owns a majority stake in DPC, by the end of next year, Adgas general manager Rashid Saif Al Jarwan was quoted as saying in Emirates news agency.

In another development, a team from Oman LNG is to go to Maharashtra to meet officials of Enron Corporation, the main foreign investors in the multi-million Dhabol project, to discuss a long-term gas supply agreement.

In December 1998, Oman LNG signed a sale and purchase agreement to sell 1.6 million tonnes per year of LNG to DPC for 20 years. Under the deal, the gas supply to Dhabol is to start from February 2002.

India will absorb a quarter of the gas production from Oman LNG.

Al Jarwan said Adgas had posted good profits in 2000 due to higher sales, and this demonstrated its commitment to the UAE economy shareholders.

"The company achieved excellent performance in all areas of business, which included a 100-million-tonne product exports since inception from Das Island," he said.

The company produced 5.2 million tonnes of LNG in line with the marketing plan to meet Tepco's requirements, he said.

Al Jarwan said Adgas sold eight LNG cargoes to customers in Spain, the US and South Korea using its dedicated LNG carriers managed by the National Gas Shipping Company.

Indo-Asian News Service

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