Dubai Looks at Overseas Oil, Gas Assets

Dubai is looking to augment supplies of gas and cut costs by acquiring overseas assets, according to a report in the National.

"We are looking at how we can really secure the supply in the long run through different sources and options," Nejib Zaafrani, the chief executive of the Dubai Supreme Council of Energy told the National.

Final decision about the move will take place before the end of this year.

"We are looking at all the options within the UAE, within the region and then beyond the region," said Mr Zaafrani.

The emirate relies heavily on imports to meet its energy needs and is paying a high price for liquefied natural gas (LNG) bought at fluctuating prices on the international markets.

Currently Dubai uses natural gas to generate power. The gas is supplied by Abu Dhabi’s ADNOC and Qatar via Dolphin Energy.

Burdened with a soaring increase in demand for electricity, Abu Dhabi is deploying a floating regasification terminal in Fujairah and the LNG import facility will become operational in 2014.

Adding the Fujairah terminal to an existing facility in Dubai positions the UAE as a potential gas trading hub able to establish a price for LNG sold into the region, Mr Zaafrani added.