UAE mulls new LNG plant to meet rising European demand: press
UAE's national oil company Abu Dhabi National Co is looking to build an LNG facility at Fujairah to increase its export capacity by more than two-fold, Bloomberg reported May 17.
Any new facility would augment the UAE's existing three-train LNG operation in Das Island, which has a maximum capacity of 5.8mn metric tons/year. Earlier media reports suggested the Emirates would build two trains with 9.5mn mt/yr of capacity at Fujairah. The port is well-located to bring more LNG to European customers, as well as into the Americas.
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Increasing LNG demand due to the war in Ukraine means the UAE has an express business opportunity, but to seize market share ADNOC must fend off competition from other regional suppliers. The emir of the UAE's neighbour Qatar is undertaking state visits across Europe to drum up more energy trade.
However Qatar does much of its business with Asian customers, and it has significant exposure to long-term contracts that are less market sensitive. There may therefore be headroom for ADNOC to capture passing spot trade with Europe, as the continent strives to diversify its supplies.