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Oman Business News

Saudis Plan To Link UAE, Kuwait, Oman In Regional Gas Grid

Saudi Arabia is discussing the possibility to have one interconnected natural gas grid in the region that would exchange gas and export the Kingdom’s gas to the United Arab Emirates (UAE), Kuwait, and Oman, Saudi Arabia’s Energy Minister Khalid al-Falih said on Tuesday.

“I am talking to my colleagues in Oman, Kuwait, UAE, about extending a gas grid in the region and we hope to exchange gas and we also have excess of gas which we will be exporting,” Gulf News quoted al-Falih as saying at the World Future Energy summit in Abu Dhabi.

As Saudi Arabia aims to develop more of its natural gas resources, it will seek to export more of its gas to its allies in the region.

“We’ve already exported gas on a commercial basis to the UAE so more of this interconnection in energy is going to take place and, importantly, also in trading of knowhow in technology and development with renewables,” al-Falih was quoted as saying.

The UAE is currently importing gas from Qatar via the Dolphin gas pipeline, which continued operations even after the UAE and Saudi Arabia, alongside Egypt and Bahrain, severed ties with Qatar in June 2017, accusing Doha of sponsoring terrorism.

The tiny country Qatar, which is the world’s largest liquefied natural gas (LNG) exporter but a relatively small crude oil producer, said last month that it was leaving OPEC effective January 1, 2019, as part of a strategic plan to focus on its gas reserves and development.

Saudi Arabia, for its part, has identified a lot of gas reserves and will be developing them, aiming to eliminate the burning of crude oil and liquids at utilities—currently a typical power plant fuel in the Kingdom—by 2030, in order to free up more crude oil for exports, Gulf News quoted minister al-Falih as saying.

Source Link: oilprice.com

  • Saudi Arabia
  • UAE
  • Kuwait
  • Oman
  • Interconnected Natural Gas Grid
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