However, it has been importing gas since 2008, with gas meeting 98% of domestic electricity needs. Crude oil provides the remaining 2%.
Demand has risen alongside population growth, around 5.6% annually, with a very high per capita consumption. The 2011 BP Statistical Review records the UAE consumed 60bcm of natural gas in 2010, while exporting another 8 bcm.
"When it becomes operational in 2014, Mubadala's new LNG import terminal in Fujairah will add another 12 bcm in import capacity and a wide range of potential suppliers," says the Moody's report. "Securing energy feedstock is also key to develop the petrochemicals industry and other energy-intensive activities in the UAE and to sustain a high level of economic growth."
"Once completed, the new import terminal will allow the UAE to import LNG without passing through the Strait of Hormuz. If traffic was disrupted, the UAE would be able to avoid the repercussions of power cuts on the non-oil economy and credit metrics would be less affected," the statement continues.
"Should Iran successfully block the Strait of Hormuz, LNG prices would rise rapidly because LNG contracts are closely linked to the price of crude oil, and supply to Asia from Qatar, the world's largest LNG exporter, would be interrupted."
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- United Arab Emirates: Thursday, April 19 - 2012 at 10:39
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Steven Bond, ReporterThursday, April 19 - 2012 at 10:39 UAE local time (GMT+4)
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