x Abu Dhabi, UAEFriday 28 July 2017

UAE set to boost fuel output

The UAE will increase its petroleum output by 10 per cent this year and boost OPEC's total supply even if it adheres closely to the group's output limits, the International Energy Agency (IEA) forecasts.

The UAE will increase its petroleum output by 10 per cent this year and boost OPEC's total supply even if it adheres closely to the group's output limits, the International Energy Agency (IEA) forecasts. The country's new output will come from condensates and natural gas liquids, the light oils that are a by-product of pumping natural gas, the Paris-based IEA said yesterday. By the fourth quarter, when a new gas processing facility in Habshan is fully operational, the UAE's output of such fuels will increase by 50 per cent from levels this quarter, making it the third-largest producer of condensates and gas liquids in OPEC.

As total gas output is increased substantially over the next decade to keep up with rocketing domestic demand, condensates and gas liquids will form an increasingly important part of the country's energy exports. Output of these fuels, which resemble a light crude oil, is not bound by OPEC production quotas since they are a by-product of gas drilling. But on the international oil market they generally command a premium to crude oil. As petroleum output grows, the UAE's production of such fuels will rise from 532,000 barrels per day (bpd) this quarter to 812,000 bpd in the year's final quarter, even if crude output is held close to the UAE's quota of 2.22 million bpd, the IEA said.

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