The total estimated value of active UAE oil and gas projects has exceeded Dh231 billion ($63 billion) this month, according to a project research and intelligence provider in the Mena region.
"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," BNC Network CEO Avin Gidwani told Khaleej Times.
The projects account for eight per cent 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 (Dh1.21 trillion) this month.
"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," he said.
In the third quarter of this year, the total estimated value of active oil and gas projects in the UAE increased significantly with the announcement of high value projects such as Borouge Petrochemicals Complex Expansion worth $2.5 billion and the re-development of projects such as the phase one of Zadco Upper Zakum full field development.
Two top oil and gas projects awarded in the third quarter of 2017 were package C of ADCO South East full field development in Abu Dhabi worth $220 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 completed during the quarter in the UAE.
Gidwani said: "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. The number of oil and gas projects in the GCC increased by six per cent as compared to the second quarter of 2017 and the total estimated value of these projects increased by five per cent."
"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," Gidwani added.