Stroitransgaz Wins UAE Pipe Contract

DUBAI, United Arab Emirates -- Engineering and construction firm Stroitransgaz has won a $418 million contract to build a gas pipeline across the United Arab Emirates, Dolphin Energy said in a statement Tuesday.

Stroitransgaz beat Italian oil-field services company Saipem and Greece's Consolidated Contractors International to the contract.

Dolphin shortlisted the three companies to build the 240-kilometer pipeline earlier this month. Work on the pipeline will begin this quarter, Dolphin said.

Dolphin imports gas to the United Arab Emirates from Qatar. The new pipeline will allow it to pump gas from the emirate of Abu Dhabi on the Gulf coast to the east coast emirate of Fujairah on the Gulf of Oman.

The gas will feed a new power and water desalination plant in Qidfa, Fujairah.

Mubadala Development, run by the government of the emirate of Abu Dhabi, owns 51 percent of Dolphin. France's Total and U.S. Occidental Petroleum each have 24.5 percent.

Dolphin in December awarded a contract worth over $200 million to supply steel for the pipeline to Germany's Salzgitter.