October 12, 2008

UAE poised to unveil landmark USD 10 billion gas deal

ArabBusiness.com Abu Dhabi is poised to seal a USD 10 billion project with US oil major ConocoPhillips to tap the emirate's vast natural gas reserves.

Mr Jim Mulva CEO of ConocoPhillips said that the deal should be announced in the next month or two, under which Conoco would be working with Abu Dhabi National Oil Company. The gas will be used to meet soaring power demand in the UAE, which is in the midst of a massive economic boom and population explosion that is putting a strain on the Gulf state's utility infrastructure.

Conoco is competing against the likes of Royal Dutch Shell and Occidental Petroleum for the contract, which has been under negotiation for several months, but unconfirmed reports have suggested it will win the deal.

Mr Mulva said that "We are working very hard on this project. Hopefully there will be an announcement that we will be working together in the next month or two."

The emirate's peak demand currently stood at about 5,286 MW and is expected to surge to 8,276 MW in 2010 and 14,946 MW in 2015. While in Dubai demand for power is expected to grow as much as 20% per year.