The Mubadala Development Company, through its branch Mubadala Oil& Gas and the International Petroleum Investment Company (IPIC) from Abu Dhabi, have announced the project to build the Emirates LNG Terminal in Fujairah, UAE.
This LNG Terminal would have a down loading and re-gasification capacity of 1.2 billion cf/d and a storage capacity of 12 billion cf gas.
It would be built in two phases, each having a capacity of 600 million standard cubic feet per day.
The first phase will include a floating storage and regasification terminal. The completion is planned in 2014
The second phase would add an onshore import terminal to be built a year later.
The UAE have the seventh largest gas reserves in the World but are chronically in deficit of gas because of the increasing needs for utilities, gas injection and petrochemical industry.
In addition the UAE faces uncertainties regarding their gas supply from different sides. The expected production and costs to come from on going gas fields development projects as Shah gas, Dolphin pipeline does not deliver expected quantities because of commercial issues and the Strait of Hormuz may be closed at any time.
In this context, the choice of Fujairah is perfect to attract investors and traders.
Sinopec, Vitol Group, and the Dutch Royal Vopak NV are considering to use Fujairah also for oil storage. Actual evaluations are to add about 1 million cm storage capacity per company.
The completion is targeted in 2014.