Pakistan LNG project - First target for the new alliance

Sharjah 29 Oct 2006  

Dana Gas, the Middle East's first private sector regional natural gas company and Single Buoy Moorings (SBM), the 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 MENA region and to tap into the LNG value chain including LNG trading activities.  The agreement was signed in Paris on the sidelines of the 11th International  Gas Summit by Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas and Mr. 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 regas terminals.

Additionally, Dana Gas, SBM and Granada Group of the USA have signed at the same time a Memorandum of Understanding for the development of an LNG Terminal at Port Qasim, Karachi, Pakistan at an estimated cost of $200 million for an initial capacity of 3.5 MTPA. It was revealed that 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, and is in discussions with major LNG producers .

"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 cooperation and benefit, which will add value both to the LNG producers and the newly emerging gas markets", said Mr. Rashid Al Jarwan, General Manager of Dana Gas.

Natural gas consumption in the Middle East has been growing by an average of 5.9% per annum over the past 10 years, driven mostly by demand for power generation caused by growing populations and rapid urbanization, and industrial sector. In addition, Global trade in Liquefied Natural Gas (LNG) has grown by an average of 7.5% per annum, and the number of countries installing the infrastructure necessary to trade in LNG have almost doubled during the same period,

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About Dana Gas
DanaGas (PJSC) is the first regional private-sector natural gas company in the Gulf Region, established in late 2005 with over 300 reputable founder shareholders from across the GCC, and some 425,000 investors from over 100 nationalities worldwide, with its shares listed on the Abu Dhabi Stock Market (ADSM).  Headquartered in Sharjah in the UAE, and opening offices throughout the region, Dana Gas aims to play a major role in the rapidly-growing natural gas business throughout the Middle East region through investing in all elements of the region's gas industry: from the upstream; through the midstream transmission and distribution of gas and LNG; and downstream into gas-related industries including petrochemicals.

About SBM
Single Buoy Moorings is a fully owned subsidiary of the Dutch public company SBM Offshore N.V., a group of international marine technology orientated companies. Its business is to serve on a global basis the offshore oil and gas industry by supplying engineered products, vessels and systems, and offshore oil and gas production services.

© Press Release 2006