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Diplomatic spat dampens Dubai’s zeal for LNG

Dubai is looking for alternative sources of energy as its ongoing dispute with Qatar is making LNG less attractive Dubai is looking for alternative sources of energy as its ongoing dispute with Qatar is making LNG less attractive.
By Abhishek Kumar 29 January 2018 0 29295
An LNG tanker approaches Ras Laffan, Qatar. (Statoil)

Directional impact on forecast:
Downbeat on Dubai’s LNG imports

Qatar’s diplomatic quarrel with some of its Gulf neighbours, including the United Arab Emirates, is having a limited impact on its LNG exports. Nevertheless, the dispute has dented Dubai’s enthusiasm for imported LNG. The emirate’s intake of the fuel declined sharply in 2017, by around 30% on an annual basis. Consequently, Dubai is exploring alternative energy sources as it becomes more challenging to procure cheap LNG.

The dispute has fundamentally changed Dubai’s outlook on LNG....