Mubadala Oil & Gas is building a new terminal in Fujairah for importing liquefied natural gas (LNG) into the UAE by 2015, a company statement said.
"(Mubadala) is working on a project with the aim of securing additional gas supplies to meet energy demand from the UAE's growing economy through the development of an LNG receiving facility located in the Emirate of Fujairah," the company said in statement , reported Reuters.
The statement added that a project feasibility study was completed last year and the project engineering phase has now commenced with the aim of delivering the first LNG supplies to the UAE in the next two to three years.
Mubadala explained that the project will be built using floating LNG storage and regasification unit (FSRU) technology.
Importantly, the new LNG terminal being built in Fujairah's will be situated outside the Strait of Hormuz which has been the centre of attention over the last few months with Iran repeatedly threatening to close the major oil supply route.
