Another LNG Terminal in UAE is a Possibility, Says Energy Minister

The UAE is thinking of building a new gas importing facility to meet rising domestic demand, The National newspaper reported energy minister Suhail Al Mazrouei as saying.

The minister made these comments as he announced the publication of the second annual State of Energy report. The report will provide a more detailed breakdown energy targets when it is published in October, the newspaper said.

Al Mazrouei reiterated the target was to generate 24 per cent of energy needs from clean energy sources by 2021, adding that actual figures may surpass the target.

The UAE imports about 2 billion cubic feet per day of gas from Qatar through the Dolphin pipeline and about 3 million cubic tonnes of LNG a year through the terminal in Dubai.

According to The National, Mubadala Petroleum and International Petroleum Investment Company – in a joint venture called Emirates LNG – plan to build an LNG intake facility in Fujairah with capacity to bring in 9 million tonnes a year. Although there have been mixed signals about whether that project will go ahead on time, the goal is still that it be built by 2018, the newspaper added.

“The UAE is today a net importer of gas, so in future we require huge amounts of gas, primarily from imports. Despite the fact that we are developing some of the most challenging reservoirs in the world – sour gas [projects at Al Hosn and Bab] – we are still going to have a huge need for imports,” the minister said.

He said that the tender for the Fujairah plant had gone out “and once that project is approved and functioning we will continue to look at supply and demand balance … we will definitely require additional LNG to balance the market”.