Abu Dhabi plans to build an import terminal for liquefied natural gas at Fujairah, a project that would enable vessels to supply the fuel without passing through the Strait of Hormuz.
Mubadala Development Co. is working on a project that would use floating LNG storage and a regasification unit, the company said in an emailed statement on Monday. The first supplies are expected in the next two to three years, it said.
Iran threatened earlier this year to close the Strait in response to sanctions that the US and Europe are imposing because of the Islamic republic's nuclear programme.
"The project would be outside the Strait, so that would give more supply security to ensure access to energy in the event of any incident in the Gulf," Robin Mills, an analyst at Manaar Energy Consulting in Dubai, said yesterday.