By ASA FITCH
DUBAI (Zawya Dow Jones) -- EmiratesLNG, a joint venture
building a natural
gas import terminal in the United Arab Emirates, has signed
a lease for 260,000 square meters of land in Fujairah where it
plans to build the terminal and a regasification facility, it
Construction of the liquefied natural
gas complex is expected to begin later this year. The local
government of Fujairah, one of the seven emirates that make up
the UAE, is also to reclaim land from the sea for the
regasification facility, which will be capable of handling the
tankers, the company said in an emailed statement.
When finished, the terminal will help the UAE fill rising
domestic energy needs, the company said. It is expected to have
the capacity to import 9 million tpy of LNG
"to help fuel the growing energy demands of the UAE economy,"
said Ahmed Al Mazrouei, the CEO of EmiratesLNG.
was formed last year to carry out the project. It is a 50-50 venture
between Mubadala Petroleum and the International Petroleum
Investment Company, or IPIC. Mubadala Petroleum is part of
Mubadala Development Co., an Abu Dhabi government-owned
strategic investment vehicle. IPIC is also government-owned and
invests in energy firms around the world.
While the UAE is a major producer and exporter of oil and
gas, it already imports substantial gas supplies from Qatar to
feed growing industrial and consumer electricity demand.
The country is also mindful of energy security and
diversifying import channels given its geographical position in
the Arab Gulf. The Fujairah location fronts the Gulf of Oman,
outside the critical chokepoint of the Strait of Hormuz.
Dow Jones Newswires