Dubai may begin importing extensive natural gas supplies from Qatar this year.
Qatargas 4, a liquefied natural gas (LNG) joint venture between Qatar Petroleum and Royal Dutch Shell, has decided to ship half of its planned output to China and Dubai instead of North America, the National reported.
It is predicted that 40 per cent of the gas from the project will go to China while ten per cent will go to Dubai, where gas exporters can expect more favourable market conditions than in the US and Canada.
As a result, Dubai may start importing up to 37 billion cubic feet per year of natural gas from Qatar as early as September.
The newspaper noted that Dubai has been seeking cheaper and cleaner alternatives to the diesel that it currently burns to generate more than 30 per cent of its electricity supply.
In 2008, the emirate signed a preliminary 15-year deal with Shell to receive up to 1.5 million tonnes per year of LNG.