• 2 hours Kinder Morgan Warns About Trans Mountain Delays
  • 8 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 13 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 17 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 23 hours Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 7 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 8 days Surprise Oil Inventory Build Shocks Markets
  • 8 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
Kurdistan Accuses Baghdad Of Planning Oil Field Seizure

Kurdistan Accuses Baghdad Of Planning Oil Field Seizure

Kurdistan authorities have accused the…

UAE Considers Importing Cheap Shale Gas from North America

In perhaps the strongest sign of the impact that the North American shale boom is having on the world, the United Arab Emirates, a member of OPEC and the eighth largest producer of crude oil in the world, has said that it is considering importing cheap natural gas from the US and Canada.

Production volumes for natural gas have soared to record levels thanks to the success of fracking and horizontal drilling in formations across North America. As a result prices have fallen, making US natural gas much cheaper than that available in other markets, and generating interest from foreign buyers.

Reuters states that already nearly a dozen long-term natural gas deals, each worth billions of dollars, have been recently signed in secret between US producers and buyers in China, Japan, Taiwan, France, and Chile.

Suhail bin Mohammed al-Mazroui, the Oil Minister for the UAE, said that they “may follow the same trend of considering investments in the United States and Canada to bring some of that gas back home.”

The country’s natural gas sector has experienced slow growth over the past few years, and is now unable to meet the rising demand. Whilst the UAE does produce large volumes of crude oil, it is interested in importing cheap natural gas in order to meet its domestic energy demands, whilst reserving the more expensive crude oil for selling on the market.

The state-run Abu Dhabi National Energy Company (Taqa) has already privately invested in Canada’s oil and gas sector, but has not yet declared a public involvement in exporting natural gas from North America. Al-Mazroui stated that “the United Arab Emirates is seriously thinking about that now.”

Last year the UAE began to build an LNG import terminal at Fujairah as it prepares to begin bringing in foreign LNG to help the country’s energy sector. Reuters reports that the country already pipes in a large volume of gas from Qatar.

When asked for more details of the deal al-Mazroui added that they “have a team in Mubadala as well as in Taqa looking at the optionality. Any investment needs to go through the vetting of the board of directors, not to me as an energy minister.”

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Comments currently closed.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News