Technical reasons behind the delay of Iranian gas supply

29 May 2011

(MENAFN) Crescent Petroleum’s executive president, Mohammad Hameed Jaafar, said that technical issues and not pricing ones were the main reason behind the delay of gas supply from Iran to Danagas in the UAE, reported Emirates 24/7.

Jaafar added that the company signed a contract with the National Iranian Petroleum Company (NIOC) ten years ago by which NIOC was supposed to supply Danagas, which is partly owned by Crescent, with gas at the end of 2005, adding that technical reasons obstructed the establishment of Iranian export and gas treatment installations for five years, although a 280 km of underwater pipeline was completed in mid 2006.

He also said that last year, both sides held serious negotiations to deal with those issues, in addition, NIOC started the supply of low pressure gas in small quantities to test Danagas’ facilities in Sharjah where the company discovered a leak in its pipes in the sea when pressure was raised in the pipelines which led to the delay for additional months.

It is worth noting that Dana Gas’s main customers include the UAE Federal Electricity and Water Authority, Sharjah Electricity and Water Authority, Dubai Gas (Dugas), and other official and private establishments.

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