Energise the Emirates

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Phil Burns, Agrekko Middle East managing director.

A major oil pipeline is to be installed in the UAE, which will stretch 400km from the Habshan oil field in Abu Dhabi to the Fujeirah port. It is expected to be trialed in 2010 and will have a maximum capacity of 1.5 million barrels per day. China National Petroleum Corporation has been awarded the contract to build the pipeline.

Dubai

Dubai is the Emirate which has seen the largest growth at the fastest pace. It has been the frontrunner of all of the Emirates and for that reason has faced the most challenges. Nearly US$7 billion is currently being spent on projects. Dubai Electricity and Water Authority (DEWA) is spending US$357 million on water projects alone, with more expected by the end of the decade.

In 2006 the installed generating capacity in Dubai was 4.6GW, which came from six power stations meeting a peak demand of 4.11GW. There are 1,180km of overhead cables in the Emirate and a total of 1,935km of underground cables.

It has been reported that the Dubai government has approved plans for DEWA to sell all of its electricity and water plants through an IPO or private sales. This would provide investors with a huge number of opportunities.

Contract awards in Dubai are still ongoing in both power and water projects. It was reported in March that Ibedrola, a Spanish firm, had been pre selected for the concession to build the largest solar thermal power plant in the world, to be based in Dubai. In the same month two transmission stations were announced by DEWA. One is to be located in the Gardens and the other at Warsan, they will have a combined capacity of 400kV.

A project agreement was also signed by DEWA and Metito, worth US$10.4 million in February this year. The project involves design, construction and augmentation works in the Jebel Ali Power Complex. The Portland Group has also reportedly been looking to develop wind and solar energy in the Emirate.

DEWA recently announced the tender for the construction of the Hassyan power and desalination plant has been deferred. It is expected to released for bidding again in September.

Abu Dhabi

In Abu Dhabi investors have gained the opportunity to enter the market thanks to a partial divestment of integrated water and power plants. Investment overall in the UAE is still strong in the utilities sector.

Abu Dhabi is the Emirate which as been linked with nuclear power for the longest and it is expected that any UAE nuclear programme will start there. This move, along with the divestment of the power sector, suggests there will be further opportunities for private enterprise over the coming years. Japan’s Ministry of Economy and Trade revealed on January 19 that is has signed a MoU with the government of Abu Dhabi for cooperation in the nuclear power generation sector. This will include the preparation and planning for the development of a nuclear power plant, training for staff and the handling of nuclear waste.

In Abu Dhabi there are a number of energy projects underway as part of Masdar’s alternative energy initiative. Masdar announced in January that construction work had begun on an on-grid 10MW solar power plant which is expected to generate 17,500MWh every year. The plant will generate power to support the construction of Masdar City, which will rely completely on renewable resources for its energy.

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