UAE to up oil output capacity

Arab News

The UAE is seeking to increase its production capacity to 3.5 million barrels per day of crude oil to contribute to the stability of global markets, UAE Energy Minister Suhail Al-Mazrouei said.

OPEC member UAE currently pumps about 2.6 million barrels per day. The country is the fifth largest oil producing country in the team, behind Saudi Arabia, Iraq, Kuwait and Iran.

Al-Mazrouei said the rise would contribute to maintaining stability of global oil markets, but he did not disclose when they are going to increase the production.

"The recent events have proven that focusing on the security of energy is necessary in order to address natural disasters and geopolitical tensions as well as other unanticipated situations, which occur periodically in the world. That’s why the UAE undertook to construct an oil pipeline connecting Habshan-Fujairah to guarantee crude oil supplied to world market," he pointed out.

He was speaking at the opening session of the 21st Annual Middle East Petroleum and Gas conference, which began yesterday in Abu Dhabi.

Exports via Habshan-Fujairah route would allow the Gulf state to bypass the strategically vital Strait of Hormuz, which Iran has repeatedly threatened to close.

The minister added that some scenario stipulates that the global oil demand may increase by one million barrels a day until it reaches 105 million barrels a day by 2030, amid economic expansion in Asia and South America.

Turkey turns to coal to loosen Iran, Russia gas reliance

John McGarrity       Reuters

• Turkey relies to 70 pct on imports to meet energy demand

• Booming population need more electricity

• Domestic lignite to boost power production, reduce import needs

LONDON, (Reuters) - Turkey is turning to its own coal, worried about dependence on pricier gas from Iran and Russia, after a deal with a UAE company which will boost its coal-fired power capacity by two thirds.

Its biggest gas supplier is Russia's Gazprom, which accounts for around half of imports, but it is long-term supply from Iran that could pose the biggest concerns. Turkey might not be able to continue to ignore further tightening of international sanctions aimed at curtailing the Islamic Republic's nuclear programme.

Gas imports have also been disrupted as a result of attacks on Iranian and Azeri import pipelines by Kurdish separatists.

"In public, Turkey has tried to show it won't bow to U.S. pressure, but even if can still buy Iranian gas, it's unlikely to be able to increase imports from a country that is subject to strict embargoes," said Alex Jackson, an analyst with political risk consultants Menas Associates.

Iran supplies around 16 percent of Turkey's gas needs, followed by 15 percent from Azerbaijan, according to International Energy Agency (IEA) figures.

Ankara has signed a $12 billion deal with Abu Dhabi's TAQA to mine lignite coal and build up to 8,000 megawatt (MW) of new power plants by 2020.