The UAE plans to invest nearly $25 billion on gas development projects in the next five years, Suhail Al Mazrouei, the UAE’s energy minister has announced.
Speaking at a summit in Moscow, Al Mazrouei said that the country aims to explore new gas fields and increase gas output.
“Gas, as a clean and environmentally-friendly source of energy, will remain a major factor in the world energy supply equation and a driving force for the world economic growth,” official news agency WAM quoted him as saying.
But the potential role of gas in the world energy mix rests on the availability of frequent supplies at affordable prices, he added. Shortage of supplies and increase in prices could negatively affect its status as a reliable source of energy, and force consumers to seek alternative sources.
Currently, several UAE oil and gas companies were investing in gas development and production projects in different countries, Al Mazrouei said.
Earlier this week, UAE-based Dana Gas announced that it discovered more gas in Egypt’s Nile Delta. The Begonia-1 well in the Lower Abu Madi Formation produced 9.4 million cubic feet per day of gas and 133 barrels of condensate during initial test drilling.
The UAE is also swiftly developing its own gas sector – in May this year, Royal Dutch Shell won a multi-billion-dollar project to develop the Bab sour gas field with Abu Dhabi National Oil Company (ADNOC). The Bab field has been valued at around $10 billion.
Meanwhile, the Shah sour gas project, which is being developed Occidental Petroleum, is on track for completion by the end of 2014.