UAE's well-timed LNG expansion [Global Gas Perspectives]
UAE's well-timed LNG expansion [Global Gas Perspectives]
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Natural Gas News
Summary
Qatar and the US were best-placed to capitalise on the global shortage of LNG. But the UAE will join them in expanding its capacity, after cutting domestic gas demand to free up supplies for export. by: NGW
The UAE last month approved the construction of what will be the country’s biggest LNG export terminal, having successfully curbed its domestic gas demand in recent years to free up supplies for sale abroad. National oil company ADNOC took a final investment decision (FID) on the construction of a 9.6mn tonne/year facility in the industrial hub of Ruwais. The greenlight was followed up with agreements in July between ADNOC and BP, Mitsui & Co., Shell and TotalEnergies, giving each foreign company a 10% stake in the project. Moreover, ADNOC has also signed several new long-term sales contracts, including for the delivery of 1mn t/yr of LNG to Shell and 0.6mn t/yr of LNG to Mitsui. These deals bring Ruwais LNG&rsqu...
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Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.