DUBAI (Dow Jones)--Abu-Dhabi's Dolphin Energy Ltd. said it has awarded Germany's Salzgitter Mannesmann International a contract to build a gas pipeline to supply a new power plant in Fujairah on the East coast of the United Arab Emirates.
Dolphin, which imports Qatar natural gas to the U.A.E. via pipeline, said the contract is worth "more than $200 million," and will see Salzgitter supply about 120,000 tons of coated line pipes.
"First deliveries are expected in the summer of 2008, with delivery completion in spring 2009," Dolphin said in a statement on Sunday.
The new 240-kilometer, 48-inch diameter pipeline will run from Dolphin's gas receiving terminal at Taweelah in Abu Dhabi to the Qidfa power and desalination plant in Fujairah, the statement said.
Dolphin, owned 51% by Abu Dhabi through Mubadala Development Co., already supplies the Qidfa power plant with 135 million cubic feet a day of gas through the Al Ain-Fujairah pipeline.
"We are committed to supporting ADWEA's gas requirements in Qidfa, Fujairah," Ibrahim Ahmed Al Ansari, Dolphin Energy's General Manager, said.
Dolphin is extracting gas from Qatar's North Field under a development and production sharing agreement signed with Qatar Petroleum in 2003.