DUBAI (Reuters) -UAE-based Dolphin Energy said on Tuesday it has not received any objection from neighboring Saudi Arabia about its pipeline to carry Qatari gas to the United Arab Emirates.
Financial news agency Bloomberg reported on Tuesday that Saudi Arabia sent a letter to an Abu Dhabi bank saying it had not approved the line crossing its territory.
“Dolphin Energy has not received any objection or protest from any country concerning the pipeline project that runs exclusively within the maritime areas of the states of the United Arab Emirates and Qatar,” said the Dolphin statement.
“It is not the policy of Dolphin Energy to comment on correspondence between other parties,” it added.
“A project of this size and partners of this caliber cannot be agreed upon without first checking all legal and related documents,” a Gulf source told Reuters.
Pipeline-owner Dolphin Energy is owned 51 percent by state-owned Mubadala Development Company and 24.5 percent each by France’s Total, and U.S. major Occidental Petroleum.
Dolphin said the pipeline, part of a $3.5 billion project, will be completed within a few weeks.
Gulf neighbors Saudi Arabia and Qatar have strained political relations over a number of issues.
Riyadh has objected to the construction of another gas pipeline from Qatar to Kuwait and Qatar’s oil minister has said that the project had been scrapped for that reason.
There is also a disagreement between Saudi Arabia and the UAE, under which the United Arab Emirates ceded to Saudi Arabia a strip of land linking the UAE and Qatar. Abu Dhabi has said it wants to amend the pact.
The National Bank of Abu Dhabi, which Bloomberg said had received the Saudi memo, declined to comment.
The Dolphin gas project aims to pump an initial two billion cubic feet per day of natural gas from Qatar’s giant North Field in the Gulf to buyers in the UAE.
Dolphin has already started to supply natural gas to Fujairah and Ras al-Khaimah emirates through a pipeline in the UAE.