Falanx Assynt Full Report
Predictions
- Major natural gas discovery will boost efforts to achieve energy self-sufficiency over coming years
- Government will look to develop further gas fields as well as increase investment in nuclear and renewable sectors to diversify energy supplies
- Coronavirus fears will result in fall in travel to Dubai but Expo 2020 launch in October appears unlikely to be affected at this stage
Event
The Abu Dhabi National Oil Company (ADNOC) announced on 3 February that it had discovered a large shallow gas reservoir along the border between Abu Dhabi and Dubai emirates. The company claimed that this new Jebel Ali field holds 80 trillion standard cubic feet (scf) of gas which, if verified, would be the largest such discovery globally since 2005. ADNOC announced it had signed a strategic partnership with the Dubai Supply Authority to begin developing the site.
Context
The UAE has run a natural gas deficit since 2008, mainly due to the major electricity demands of its two largest cities Dubai and Abu Dhabi. To help meet this demand, the country imports around one third of its gas supply (up to two billion scf per day) from Qatar, which is set to continue exporting the fuel to the UAE via the offshore Dolphin pipeline until 2032. However, Abu Dhabi has in recent years moved towards energy self-sufficiency, for instance approving a five-year USD 132 billion energy investment plan in 2018, which partly focuses on gas exploration and production.
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Falanx Assynt is a leading global intelligence consultancy, it is part of the Falanx Group (LON:FLX).
