Why GCC and UAE need Qatar more? …QATAR supplies 35% of United Arab Emirates energy needs every day

How QATAR is fueling UAE (Dubai and Abu Dhabi) through the Dolphin Energy Project? QATAR supplies 35% of UAE’s energy needs every day. When it comes to natural gas shipments, the United Arab Emirates needs Qatar more than Qatar needs the U.A.E. Pipeline spared as imports generate half of U.A.E.’s power. Without Qatar gas, Dubai and Abu Dhabi might pay more for fuel and the cost of energy supply will increase considerably.  What’s the Dolphin Energy Project? …by Dr. Theodore Theodoropoulos ”The Secret World of Energy” ed. Virgin and Amazon, 2009/2011/2013, MD of POWERGLOBE (a reg. co. of Qatar Financial Centre Authority). 

The EMIR and LEADER of THE STATE OF QATAR, HH SHEIKH TAMIM

The U.A.E. joined Saudi Arabia in cutting off air, sea and land links with Qatar on Monday. But the U.A.E., which depends on imported gas to generate half its electricity, avoided shutting down the pipeline supplying it from Qatar. Without this energy artery, Dubai’s glittering skyscrapers would go dark for lack of power unless the emirate could replace Qatari fuel with more expensive liquefied natural gas.

What’s the situation for Qatari gas shipments to the U.A.E.?

Qatari natural gas continues to flow normally to both the U.A.E. and Oman through a pipeline, with no indication that supplies will be cut, according to a person with knowledge of the matter who asked not to be identified because the information isn’t public. Abu Dhabi-based Dolphin Energy Ltd., which operates the gas pipeline, declined to comment.

The Dolphin Energy Project: Who are the players behind Qatar’s gas link with the U.A.E.?

Dolphin Energy’s facilities are located in Qatar – Ras Laffan, Qatar and Abu Dhabi, UAE. The company is involved at every stage of the gas value chain – production of raw gas at the wellhead, processing onshore, removal of valuable by – products, transmission of natural gas by export pipeline to the UAE and subsequent distribution to customers across the UAE and to Oman.

Dolphin Energy’s UAE Operations is responsible for operations, maintenance and managing the UAE Gas Network – comprising the Taweelah Receiving Facility (TRF), the Eastern Gas Distribution System (EGDS), the Al Ain-Fujairah Pipeline and the Taweelah-Fujairah Pipeline. These assets ensure the receipt and distribution of natural gas from Dolphin Energy’s gas processing plant in Ras Laffan, Qatar to its customers across the UAE and Oman, in a safe and reliable manner. The unique aspect of the Dolphin Gas Project is that Dolphin Energy is involved in the three key stages of the production chain upstream, midstream and downstream.

30% of the total UAE’s energy needs are covered by QATAR …Qatari natural gas continues to flow normally to both the U.A.E. and Oman through a pipeline

Qatar, which has the world’s third-largest gas deposits, sends about 2 billion cubic feet of the fuel a day through a 364-kilometer (226-mile) undersea pipeline. Dolphin Energy, the link’s operator, is a joint venture between Mubadala Investment Co., which holds a 51 percent stake, and Occidental Petroleum Corp. and Total SA, each with a 24.5 percent share. Since 2007, the venture has been processing gas from Qatar’s North Field and transporting it to the Taweelah terminal in Abu Dhabi, according to Mubadala’s website. Dolphin also distributes gas in Oman.

What’s the extent of the U.A.E. ban on shipping with Qatar?

The U.A.E.’s oil ports authority on Wednesday night again restricted international vessels from traveling to and from Qatar, along with Qatar-flagged ships, from entering its harbors. Earlier in the day, Abu Dhabi’s Petroleum Ports Authority had lifted restrictions on international tankers. The tanker Apollo Dream, which carries about 2 million barrels of crude, loaded at an offshore terminal in Abu Dhabi on Wednesday after being at an offshore terminal in Qatar on Tuesday, according to tanker tracking data. The vessel is currently outside Saudi Arabia’s Ras Tanura port.

Other U.A.E. ports, including Jebel Ali, the region’s biggest container terminal, and the oil-trading hub at Fujairah are prohibiting all vessels traveling to or coming from Qatar. Royal Dutch Shell Plc diverted a vessel carrying LNG to Dubai’s Jebel Ali port to supply fuel under contract amid the ban on Qatari vessels, FGE Energy said in research note. The tanker Maran Gas Amphipolis moored Thursday, and originally listed Kuwait’s Mina Al Ahmadi as the destination, according to ship data. I hope that this GCC conflict will come to the end without and addition economic impact. Qatar’s newly expanded port facilities mean it can continue liquefied natural gas exports that earned it a trade surplus of $2.7bn in April, and import by sea goods that used to come over its land border with Saudi Arabia, now closed. Qatar’s main stock index fell more than 7 percent. Dubai stocks fell 0.7 percent and the main Saudi index also fell before reversing course to rise half a percent.

How Qatar and its neighbors may lose billions from diplomatic split …?

  • Qatar’s huge financial resources mean it can avoid crisis
  • LNG shipments will continue, food can be imported by sea
  • GCC countries have little economic exposure to each other
  • But borrowing could become more expensive for Qatar, others
  • Saudi may try to force companies to choose between markets

A diplomatic rift between Qatar and its Gulf neighbors may cost them billions of dollars by slowing trade and investment and making it more expensive for the region to borrow money as it grapples with low oil prices. With an estimated $335 billion of assets in its sovereign wealth fund, Qatar looks able to avoid an economic crisis over the decision on Monday by Saudi Arabia, Egypt, the United Arab Emirates and Bahrain to cut air, sea and land transport links. The tiny state’s newly expanded port facilities mean it can continue liquefied natural gas exports that earned it a trade surplus of $2.7 billion in April, and import by sea goods that used to come over its land border with Saudi Arabia, now closed.

 

Sources: QGN, Bloomberg, Dr. Theodore Theodoropoulos ”The Secret World of Energy” ed. Virgin, 2009/2013, Gulf News Agencies, CNN, QP, DE, CCN, QFC.