Dubai: A new giant oil pipeline that will enable the UAE to bypass the strategic Strait of Hormuz waterway by exporting crude via Fujairah will be completed "soon," the country's oil minister said yesterday.

Speaking on the sidelines of the World Petroleum Congress in Qatar's capital, Mohammad Bin Dha'en Al Hameli, UAE Minister of Energy, didn't say when the pipeline would be completed.

The $3.29 billion, (Dh12.07 billion) 400-kilometre pipeline will enable Abu Dhabi to export as much as 70 per cent of its crude from Fujairah on the Arabian Sea, where tankers will be able to pick up the oil instead of sailing an extra day into the Arabian Gulf via the Strait of Hormuz.

Busy tanker route

The strait is one of the world's busiest tanker routes through which Gulf oil producers ship their crude exports. About 20 per cent of global consumption is being shipped through the route every day.

Oil prices have risen in the past, partly on fears Iran could block exports from the region through Hormuz if tensions with the US over the country's controversial nuclear programme escalate.

Al Hameli stressed the UAE's commitment to maintaining and strengthening its role as a major oil and gas producer, highlighting that oil will continue playing a prominent role in global energy for many decades to come.

Clean energy

He also noted that despite expectations that the contribution of oil share will fall from 34 per cent to 28 per cent, the demand will continue to reach over 109 million barrels per day in 2035.

"The UAE firmly believes that nuclear power represents an important clean energy source that should be developed along with other clean fuels. We have been able to embark on an important civilian nuclear energy programme in close collaboration with the IAEA in Vienna," he said.

The first reactor will be commissioned in 2017 and the objective is for nuclear energy to eventually account for 25 per cent of the UAE's electricity requirements.

"We believe that the best way of securing a sustainable economic future in a carbon-constrained world is to develop a balanced portfolio of clean energy sources in which nuclear, renewable energy, oil and natural gas all have a role to play," he said.

Solar power

In addition to nuclear energy, the UAE is geographically well placed to utilise solar energy to the maximum and Abu Dhabi has recently set a target of generating seven per cent of its energy needs from renewable sources, he said.

Already, Masdar Power is developing the 100 megawatt Shams One Concentrated Solar Power plant in the Western Region of Abu Dhabi which, when completed, will be the largest such unit in the world.

Masdar is also developing a 30 megawatt wind farm and a Photovoltaic array on Sir Bani Yas Island.

In addition to measures to improve its energy mix at home, the UAE is seeking to promote a sustainable future in the world as a whole.

New technologies

Masdar is building the world's first low-carbon city built on sustainable principles in Abu Dhabi, and among the first tenants will be the Masdar Institute which will eventually host 200 faculty members and 600-800 graduate students studying to gain advanced degrees (Masters and PhDs).

Another important tenant will be the International Renewable Energy Agency, now headquartered in Abu Dhabi, he said.

The objective of the UAE's energy policy is not just to reduce carbon emissions at home but also to play a leading role in the development of innovative new technologies that can effectively contribute to a substantial reduction of global warming.

Commitment

"Our commitment to renewable energy at home is matched by our firm belief that there is an important future for renewable energy across the world.

"Our vision is to be seen as enablers and promoters of the global uptake of renewable energy, as well as providing a platform for research into emerging renewable energy technologies," the minister said.