LNG

ABU DHABI economic development conglomerate, Mubadala, plans to develop an LNG import terminal on the eastern coast of the United Arab Emirates outside Gulf waters and the Strait of Hormuz. Mubadala said it intended to set up the facility in the eastern emirate of Fujairah and it is expected to be in operation by 2014 or 2015. The UAE currently imports LNG to Dubai. The Dubai Supply Authority has the port-side Floating Storage and Regasification Unit, the "Golar Freeze". The facility supplements existing gas pipeline supplies by receiving and regasifying imports of LNG organized by Royal Dutch Shell during the summer months when UAE power demand rises. The UAE is also an LNG producer at the Das Island LNG plant owned by Abu Dhabi and delivered under long-term contract to the Far East. Iran's threats to shut the Strait of Hormuz in its dispute with the United Nations over its nuclear policies have raised concerns about energy security from Gulf sources. However, Mubadala made no mention of this issue when announcing its LNG import terminal plan. "The project will be undertaken incorporating the latest, proven floating LNG storage and regasification unit technology," Mubadala said. "The project feasibility study was completed last year and the project engineering phase has now commenced with the aim of delivering first supplies in the next two to three years."

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