BNC Network CEO says projects in the UAE account for 8% of the regional total
The total estimated value of active oil and gas projects in the UAE has exceeded $63 billion this month, the CEO of a MENA project research and intelligence provider has said.
Speaking during an interview with Khaleej Times, Avin Gidwani, CEO of BNC Network, said that the projects account for 8% of the total estimated value of oil and gas projects in the region. The combined value of 361 active oil and gas projects in the GCC crossed $331.4 billion this month, he added.
“This reflects continuous investment by the UAE government in boosting energy output to help fuel the global economy that relies on hydrocarbon production of GCC countries,” Gidwani said.
“Even as the growth of renewables accelerates, the oil and gas industry continues to grow and is expected to remain sustainable for many years ahead.”
The third quarter of this year saw the total estimated value of active oil and gas projects in the UAE increase significantly with the announcement of high value projects, such as the Borouge Petrochemicals Complex Expansion, which is worth $2.5 billion, and the redevelopment of projects such as Phase One of the Zadco Upper Zakum full field development.
In the third quarter of 2017, two top oil and gas projects were awarded – Package C of ADCO South East full field development in Abu Dhabi was worth $200 million, and interconnecting pipelines worth $100 million, which is part of the upgrade of Jebel Ali refinery in Dubai. Seven oil and gas projects with an estimated value of $1.7 billion were also completed during the quarter in the UAE.
“In the third quarter of 2017, 17 projects with a combined estimated value of $22.05 billion were announced in the GCC’s oil and gas sector, despite a low-oil price environment where oil price has been hovering around the psychological mark of $50 per barrel,” said Gidwani.
“The number of oil and gas projects in the GCC increased by 6% as compared to the second quarter of 2017 and the total estimated value of these projects increased by 5%.
“Although the UAE and other Gulf countries are investing in non-oil energy projects – such as renewable and nuclear power projects – the oil and gas industry is here to stay for a long haul till alternative fuel consumption, such as battery and solar-powered vehicles, grows worldwide,” he concluded.