UAE is Planning to Invest Around USD163 Billion on Energy by 2050
The rise in industrialization will lead to greater
demand of power in UAE and growth of allied industries in energy sector,
thereby boosting the demand for LNG in the country.
UAE: The United Arab Emirates
has announced its energy strategy 2050 in which it has planned to invest USD163
Billion on energy. According to Vice President and Prime Minister of the UAE
and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, the strategy aims to
increase the contribution of clean energy sources in the total energy mix of
UAE. The new strategy takes into consideration the environmental concerns,
growth of the country as well as supply- demand scenario prevailing in energy
sector of the country.
TechSci Research finds out that the rise in demand
of power in UAE and other Middle East countries will surge the demand for LNG for
power generation. Growing focus on expansion of gas pipeline
infrastructure, along with increasing utilization of natural gas for
re-injection into oilfields to enhance oil production, declining LNG prices and
implementation of favorable government policies is expected to boost demand for
LNG in the UAE.
According
to released report of TechSci
Research “UAE LNG Market Demand & Supply Analysis,
By Region, By Application, By LNG Terminal, Competition Forecast and
Opportunities, 2011-2025”, UAE LNG market is projected
to grow at a CAGR of 7.6% during 2016-2021. UAE is the third largest importer
of LNG in Middle East & Africa region in 2015. The country mainly imports
LNG from Qatar, Australia, Trinidad & Tobago and Indonesia. Various
upcoming LNG terminal projects, surging demand for natural gas and
cost-effectiveness of LNG in comparison with other alternative fuels are major
factors anticipated to positively influence the LNG market scenario in UAE,
over next ten years.