Abu Dhabi & Sharjah To Have CNG-Powered Transport Sector.

ADNOC Distribution (ADNOC-FOD), the retail arm of Abu Dhabi National Oil Company (ADNOC) on Nov. 22 said it will set up 16 compressed natural gas (CNG) filling stations in Abu Dhabi and Sharjah in 2007 to offer cheaper and clean fuel. "We are planning, as a first phase, to establish 11 stations in Abu Dhabi and six in Sharjah, with five conversion stations operated by international companies in Abu Dhabi", Jamal al-Dharif, the company's general manager told reporters on Nov. 22. They will be the first natgas stations in the UAE, where all vehicles are powered by gasoline. However, residents of Dubai will not benefit as ADNOC does not operate in Dubai.

ADNOC Distribution is launching an awareness campaign on the benefits of the clean fuel. "Natural gas saves the consumer about 34%, as the cost of a gallon does not exceed Dh4. It is also environment friendly, and safer than any other fuel", Dharif explained. The Abu Dhabi government-owned company is negotiating with German company TUV to be the third party inspector, and is applying the specifications set by the Emirates Specifications and Standardisation Authority. "Each filling station will have a capacity of 300 cars per day, and will cost about Dh4 million to set up. We are negotiating with transport companies, as well as private taxis owners, and we expect the fuel to become popular", Dharif concluded. The cost of the first stage is about Dh65 million, and further stations are being planned to cater for more consumers as the need may rise. Abu Dhabi produces about 4,500 MCF/day of natural, of which 3,600 MCF/day goes for local consumption, mostly to generate energy, and 720 MCF/day are exported as LNG.