UAE will spend $1.6 billion on Oil and Gas projects in 2021
The United Arab Emirates have more than $50 billion of active Oil and Gas projects at the moment. Negative oil prices during the COVID-19 pandemic forced a strategic re-evaluation of national development priorities.
Abu Dhabi National Oil Company, ADNOC, has the vision to become gas self-sufficient by 2030. Dolphin Energy is importing gas from Qatar to Dubai and Taweelah. Most of the UAE’s gas stems from associated oil fields, which means to increase gas production, oil production must increase. That said, with the looming global oil demand peaking somewhere over the next two decades, oil producers and exporters will be keen to maximise revenues.
The vast Jebel Ali gas field discovered recently straddles the Abu Dhabi and Dubai border. Adnoc will develop this field and deliver gas to the Dubai Supply Authority (DUSUP) for distribution to power plants and other consumers.
The UAE will spend, on average, $135 million per month in 2021 on Oil and Gas projects. Cash flow will peak in December 2021 at about $160 million.
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