Last month saw the inauguration of the Dolphin gas processing plant in Qatar, signalling the fruition of the first cross-border energy project of any kind in the Middle East.
‘So significant an occasion in energy circles, we thought it warranted a closer inspection and the cover of the June issue of Oil & Gas Middle East.’
Whilst the technological achievements are impressive, the spirit of the occasion was clearly aimed at celebrating how a vision of unity has brought the countries of Oman, Qatar and the UAE closer together through an historic energy agreement.
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The pipeline will deliver natural gas from Qatar’s vast offshore North Field to the UAE and Oman, the equivalent in energy terms to 350,000 barrels of oil, each day.
The price has been fixed for a 25-year period, showing a massive brotherly commitment from Qatar at a time when energy premiums are at
a peak.
The nature of the quarter-century contract is all the more remarkable in light of recent behaviour by other major gas exporters.
Russia, most notably, has begun leveraging its resource might against its neighbours, dramatically increasing prices and threatening to turn off vital supplies if its demands are not met.
In addition, this resource dependence has allowed the giant to use its gas as a political tool and extend its influence beyond its borders.
There is almost no question that higher prices and greater revenues could have been secured by Qatar if it traded its most valuable resource on international spot-price markets, or to the European, Asian and American markets.
In times of energy price volatility most exporting countries seize the opportunity to enrich national funds with scant regard to the end customer’s fiscal situation.
Dolphin represents a notable break from such behaviour. The project will become the benchmark that all other collaborative efforts in the region will be held to.
In an energy-rich region such as the Gulf it is inconceivable that neighbours should go without access to economical resources. Each country in the region possesses different strengths, and an effort to see neighbours flourish is both admirable, and highly desirable.
This project will hopefully be the dawn of an even greater era of co-operation, and sends a loud international signal that the Gulf countries are united in their pursuit of prosperity, and will use their energy resources to deliver this.
Daniel Canty is the editor of Oil & Gas Middle East.
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