(MENAFN- Khaleej Times) The Ministry of Energy is carrying out a study on subsidies being provided on petroleum products, which will be submitted to cabinet for a decision soon, says UAE Minister of Energy, Suhail bin Mohamed Faraj Fares Al Mazrouei.
Speaking at the launch of UAE State of Energy Report 2016, which will be released in October this year, the minister said, the energy ministry is working on the study in light of the instructions of Federal National Council, after members wanted to know why the benefits of lower oil prices were not passed on to consumers. Al Mazrouei said the study will review different aspects of subsidies on petroleum products and will discuss their impact in different scenarios where if they are removed partially or fully.
The report, he said would be submitted to the cabinet to take a decision. The energy minister said that subsidies always encourage higher consumptions in society and discourage the efforts for energy conservation.
On efforts to boost energy conversation in the country, the minister said that with adjustments in electricity tariffs for commercial consumers, 10-15 per cent energy conservation has been achieved by the Federal Electricity and Water Authority or Fewa.
The ministry has got a mandate to work with stakeholders in trying to balance energy equation like what the UAE will require in the future in terms of gas and since the country's economy has a growth, it require to work in all forms of energy sources including indigenous gas, sour gas. In addition to finding some other sources of importing gas and diversifying that market is something "we are looking at," he said. The energy minister said other possible sources could be expansion of Dolphin Gas Pipeline from Qatar, along with importing LNG.
The country imports about two billion standard cubic feet a day of gas by pipeline from Qatar to meet about 30 per cent of its energy requirements.
Once the Emirates LNG project starts in 2018, in Fujairah, the country will assess the need for more capacity, he said. The project study is done and ready for approval, he said.Abu Dhabi plans an LNG terminal in Fujairah to receive as much as nine million tonnes of LNG a year, or about 1.2 billion cubic feet a day.
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