UAE's energy expansion and nuclear plans

Coming soon to the UAE?

Don't be alarmed, the UAE isn't set to enrage the MENA region by announcing a nuclear weapons program; instead a US$5.59 billion contract has been awarded to Hyundai Engineering and Construction, as well as Samsung C&T, for the construction of the UAE's first nuclear power plants.

The news out of Abu Dhabi states that Hyundai was awarded 55 percent of the contract with the remainder going to Samsung. The contract was awarded by the Korea Electric Power Company (Kepco), the winner of the UAE's US$20.4-billion contract announced in December.

The agreement will see the power plants ready for delivery by May 2020, with the first of the four units ready to enter service by 2017.

All four power plants will be construction on one site, though the precise location has yet to be confirmed with ten locations being considered.

UAE energy expansion

The nuclear plans aren't the only ones progressing in the UAE; Dubai Target Engineering Construction Company has been awarded two projects in Abu Dhab said to be worth US$227.3 billion.

The first project was awarded by Takreer for the Sea Water Intake 3 project and its associated pumping facilities for completion in 28 months, while the second project was awarded by the joint venture Petrofac-GS to execute a sea water intake system and pipeline for the Gasco Ruwais fourth NGL Train project for a duration of 20 months.

The projects include engineering, construction and commissioning works. Ayman Taji, CEO of Target, said in a statement.

"The two new projects enforce our strategy to position Target as a leading company in the construction sector and especially in marine engineering and construction projects. We are looking forward to future collaboration on other projects with Takreer and Petrofac-GS."

Offshore gas production

Kharafi National, a Kuwait-based construction group in the Middle East and Africa, have also stated they will construct the Habshan 5 process plant, an integrated gas development project for Gasco, in Abu Dhabi.

The project, with a value of US$728 million (Dh2.7 billion) aims to increase Abu Dhabi's offshore gas production capacity by one billion cubic feet per day.

With all these projects going on, it is clear that despite being hit hard by the debt crisis the UAE isn't resting on its laurels when it comes to energy production.

Relevant articles:

Abu Dhabi's $2bn power need | Egypt to combat emissions with solar power | Abu Dhabi - top GCC infrastructure spender

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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