Trade Policy Review

Page 100

United Arab Emirates

WT/TPR/S/XX Page 99

governments of the UAE and Qatar to allow the Abu Dhabi Government and its partners to invest in the appraisal, drilling, and construction of the upstream facilities in the dedicated concession area in the North Field. In return, Dolphin Energy would share with Qatar the income from the by-products extracted at its Ras Laffan Gas Processing Plant, while buying all the natural gas produced for export to the UAE and Oman. The agreements provide for the supply of Dolphin natural gas to each customer for terms of 25 years. Currently, Dolphin Energy helps meet around 30% of the UAE's energy requirements. The project delivers around 2 billion standard cubic feet of natural gas per day to customers throughout the UAE and Oman. Moreover, Dolphin's natural gas is helping to support the Abu Dhabi Vision 2030 by being a reliable supplier of clean energy. Information provided by the authorities; and online information at: www.dolphinenergy.com.

Source:

58. The UAE continues to export a large amount of gas, at relatively stable levels, notwithstanding the increase in imports to meet its domestic needs. This is largely because: (i) a significant portion of the UAE’s natural gas production is committed to long- term LNG export contracts; and (ii) most of its reserves are concentrated in the emirate of Abu Dhabi, and the lack of an integrated gas pipeline distribution network means that the other emirates (particularly the “northern” emirates need to import natural gas. 59. The emirate of Sharjah has its own gas production and investment projects. Its main project, DanaGas, is the region's first privately owned gas exploration company. DanaGas has active investments in the UAE, Saudi Arabia, Iraq, Egypt, and the United Kingdom. DanaGas has been a pioneer in the creation of the "gas cities" concept, which aims to create an integrated natural gas industry cluster in various locations around the world. 60. The UAE is assessing the exploitation and use of alternative renewable sources of energy, in particular solar power, through the Abu Dhabi Future Energy Company (MASDAR), which is wholly owned by the state-owned Mubadala Development Company. The Federal Government's energy policy aims at producing 7% of total capacity by 2020. 61. Nuclear energy has gained priority in recent years, following the establishment of the Emirates Nuclear Energy Corporation, which was set up to act as the government investment arm for the development of nuclear energy. (iii)

Electricity and water

62. The UAE is the second-highest consumer of electricity in the Arab Gulf countries, after Saudi Arabia. In 2010, UAE residents consumed around 89,587GWh of electricity. Plans for economic diversification, coupled with strong population growth, have led to increased demand for electricity. Electricity in the UAE is produced from conventional thermal sources, such as natural gas and diesel oil fuel. Installed generation capacity increased from 15,865 MW in 2006 to 23,215 MW in 2010. 63. Water resources are scarce. Almost 93% of potable water is desalinated, and the rest comes from ground water. In 2010, total desalinated water production was 354,536 million gallons and ground water production 25,000 million gallons. The supply of both electricity and water are highly subsidized in the different emirates.


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