Dana Gas, SBM Form LNG Terminal Alliance.

Sharjah-based Dana Gas, the Middle East's first private sector regional natural gas company, and Single Buoy Moorings (SBM), a world leader in providing offshore floating solutions for the oil and gas industry, have signed a co-operation agreement. Dana Gas has the objective to develop a network of LNG terminals mainly in the Middle East and North Africa (MENA) region and to tap into the LNG value chain including LNG trading. The agreement was signed recently in Paris on the sidelines of the 11th International Gas Summit by Hamid Dhiya Jafar, executive chairman of Dana Gas and Didier Keller, chief executive officer of SBM.

The newly formed alliance will initially target LNG terminal projects in Pakistan, Lebanon and Kuwait. Within the alliance, Dana Gas will be more particularly involved in the LNG marketing activities and SBM in the supply and operation of LNG floating storage and regasification terminals. Additionally, Dana Gas, SBM and Granada Group of the US have signed a memorandum of understanding (MoU) for development of an LNG terminal at Port Qasim, Karachi, Pakistan at an estimated cost of $200m for an initial capacity of 3.5m t/y. The newly formed consortium is quite advanced in the definition of the terminal and has progressed in the requisite applications for site allocation and import licence. It is in talks with major LNG producers. Dana Gas General Manager Rashid al-Jarwan said: "Through this key agreement, we are delighted to partner with SBM, a world leader in providing comprehensive offshore solutions for the oil and gas storage, production and offloading. We anticipate this to be the beginning of a fruitful relationship of mutual co-operation and benefit, which will add value both to the LNG producers and the newly emerging gas markets".