UAE-Qatar gas pipeline remains open due to energy needs – report

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.

As it stands the pipeline remains open and gas continues to flow through the UAE to Oman, with no indication it will be cut off, 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 per cent owned by Abu Dhabi’s Mubadala Investment.

Occidental Petroleum and France’s Total hold the remaining shares with 24.5 per cent 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 UAE emirates of Sharjah and Ras Al Khaimah via the pipeline.

Read: UAE’s Dolphin to supply Qatari gas to Sharjah and RAK

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 emirates did ease restrictions on international tankers arriving at its ports.

Abu Dhabi’s Petroleum Ports Authority was reported to be allowing entry to non-Qatari owned or flagged vessels that were sailing to or from Qatar’s ports having previously denied access.

However, further reports on Thursday suggested the ban had been reimposed on all vessels arriving from or destined to Qatar.

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.

Read: Trump offers to help resolve Gulf crisis as UAE tightens squeeze on Qatar