UAE – time to accelerate LNG expansion plans [Gas in Transition]
UAE - time to accelerate LNG expansion plans [Gas in Transition]
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Natural Gas News
UAE – time to accelerate LNG expansion plans [Gas in Transition]
Summary
Sitting on some of the world’s largest gas reserves, the UAE has never been short of gas potential, yet it remains a substantial net importer. This looks set to change by the second half of the decade, suggesting a need to firm up its plans for expanded LNG exports. [Gas in Transition, Volume 3, Issue 5] by: Ross McCracken
Two announcements in May carried importance for the UAE’s attempts to achieve gas self-sufficiency and expand its LNG export capacity to take advantage of growing demand for the fuel. First was the announcement that its planned second LNG plant, with proposed capacity of 9.6mn mt/yr, will be built at the Ruwais downstream oil and gas hub in Abu Dhabi rather than in Fujairah. The new location came as something of a surprise, particularly given the seizure by Iran of two Greek-owned oil tankers, the Prudent Warrior and the Delta Poseidon, in the preceding days. The seizures highlight the continued risk to shipping presented by the Strait of Hormuz, the narrow channel between Iran and the Musandam governorate of Oman. One of Fujairah’s key advantages is that it provides access to the Gulf of Oman east of the Strait. In the event of the Strait’s closure to shipping, UAE LNG exports would have a better chance of continuing uninterrupted. The issue has...
Related Knowledge Center: Liquefied natural gas
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