Qatar Keeps Gas Flowing to UAE Despite Crisis

Published June 8th, 2017 - 11:41 GMT
There are no indications the Qatar-UAE gas pipeline will be shut, according to reports. (Thomas White/ Reuters)
There are no indications the Qatar-UAE gas pipeline will be shut, according to reports. (Thomas White/ Reuters)

The UAE has avoided shutting down its natural gas pipeline with Qatar, despite closing air, sea and land links, due to its dependence on gas to generate electricity, according to reports.

Bloomberg cited International Energy Agency data as confirming the emirates relies on gas to meet half of its electricity needs and would need to replace Qatari fuel with more expensive liquefied natural gas if the Dolphin Energy pipeline were to close.

Source: Gulf Business

As it stands the pipeline remains open and gas continues to flow through the UAE to Oman, with no indication it will be closed, a source told the news service.

Around 2 billion cubic feet of gas is sent through the 364km undersea pipeline per day under the Dolphin Energy venture, which is 51 percent owned by Abu Dhabi’s Mubadala Investment.

Occidental Petroleum and France’s Total hold the remaining shares with 24.5 percent stakes respectively.

The Dolphin Energy pipeline has been processing gas from Qatar’s North field to the Taweelah terminal in Abu Dhabi since 2007.

A further long-term agreement was signed in October to supply gas to the emirates of Sharjah and Ras Al Khaimah via the pipeline.

The wider rift between Qatar and Arab states including Saudi Arabia, Bahrain and the UAE showed no signs of being resolved on Wednesday but the UAE did ease restrictions on international tankers arriving at its ports.

Abu Dhabi’s Petroleum Ports Authority is now allowing entry to non-Qatari owned or flagged vessels that are sailing to or from Qatar’s ports having previously denied access.

US President Donald Trump offered to help resolve the crisis yesterday after UAE minister of state for foreign affairs Anwar Gargash indicated the emirates could impose further economic curbs.

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