Gulf states may soon need coal imports

Discussion in 'The Intelligence Cell' started by Blogg, May 19, 2008.

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  1. What a world we live in.

    Gulf states may soon need coal imports to keep the lights on

    They are countries so rich in oil and gas that they would never want for fuel to drive their booming economies and the lavish lifestyles of their rulers.

    Now, however, in a role reversal that makes selling sand to Saudi Arabia look like a sensible business transaction, the oil-rich Gulf states are planning to import coal.

    An acute shortage of natural gas has led to the city states of the United Arab Emirates seeking alternative fuels to keep the air cool, the lights on and the water running.

    Abu Dhabi is working with Suez, the French utility company, on a nuclear power project but coal is emerging as the best quick fix to avert blackouts as the world’s biggest hydrocarbon exporters struggle to cope with high prices for oil and natural gas, infrastructure weakness and a development boom. Some of the world’s biggest oil exporters may soon find themselves reliant on imported fuel from a leading coal exporter, such as South Africa.

    As a result, Taqa, Abu Dhabi’s national energy company, plans to take a half share in a proposed £500 million coal-fired power plant, while Dubai Electricity and Water Authority (DEWA) hopes to start work on a clean-coal project this year.

    Oman Power and Water Procurement Company indicated in December that a planned 700-megawatt power and water desalination plant may need to be fuelled by coal instead of natural gas.

    The dramatic transformation is taking place because, for the first time, the Gulf states are beginning to feel the burden of the soaring cost of fossil fuels. In March Dubai introduced an electricity pricing system that increased tariffs for heavy users. The new tariffs apply only to foreign businesses, expatriates and foreign-owned businesses. Emiratis are exempt.

    The sudden gas shortage has caught the Gulf states by surprise at a time when demand for power and water desalination is increasing annually at double-digit percentage rates. Investment in infrastructure has lagged behind the region’s population expansion and construction boom. Anecdotes abound of apartment complexes left empty because there is not enough capacity in the local electricity grid.

    According to Wood Mackenzie, the energy consultancy, the UAE’s demand for gas will double within a decade if power consumption continues to grow. Dubai’s peak power consumption rose by 15 per cent last year, according to DEWA’s statistics.

    “Demand for natural gas is rising at 12 per cent per annum. In the summer the UAE is burning liquid fuel [fuel oil and diesel] for peak power generation,” said Peter Barker-Homek, Taqa’s chief executive. “Should there be alternatives [to burning oil], such as coal and nuclear? Probably, yes. If you have a product worth $120 per barrel, you want to sell it. The question about coal is always the environment. It is definitely cheaper than using crude oil.”

    Last summer Abu Dhabi’s oil output fell by 600,000 barrels per day as natural gas was diverted from injection into oil wells to power stations to meet peak demand for electricity.

    The Emirate has substantial reserves of gas but much of this is earmarked for injection into wells to maintain pressure and to improve oil output. With the crude oil price reaching $125 (£64) per barrel, the diversion of gas into local power stations is a huge cost to the country.

    Meanwhile, the price of natural gas in the Gulf has soared amid shortages and increased global demand. Local gas resources in the Emirates have dwindled, and Abu Dhabi and Dubai are already importing gas by pipeline from Qatar.

    Iran, which holds some of the world’s biggest gas reserves, is another option, but relations between the Western-friendly Emirates and Iran are uneasy. A project led by Dana Gas, a private sector company based in the Middle East, to bring Iranian fuel across the Gulf to Sharjah has been locked in pricing disputes.

    In a desperate attempt to avert power and water shortages in the summer, Dubai entered into a 15-year contract with Royal Dutch Shell last month to supply liquefied natural gas in the summer period from 2010. However, this is an expensive fuel, and the Emirates have built their economies on gas at almost nil cost.
  2. Well I am very sorry Mr Arab, but Mad Maggie Thatcher shut all our Coal Mines because the miners would not get down on their knees for the cow.
    So we do not have any coal to sell ....
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  3. Oh yes we do, just as long as it's not mined by communists living in the 50's led by a Stalininst called "Arfur".

    Simple economics old boy. The Miners of the afore mentioned miners strike could not produce it efficiently (i.e. at a profit) which, in a capatalist society such as ours only means one thing - closure. If it wouldn't have been Maggie (God bless her), it would have been someone else. The closures were the inevitable result of the union culture and changing world economics.

    I'm sure if demand and therefore cost increased enough then many pits would re open.
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  4. The lack of gray cells have caused Aunty Stella to mumble thus....

    "The closures were the inevitable result of the union culture"

    The closure of the Pits, the Car Industry, Electronics, in fact anything involving human labour was nothing whatsoever to do with Unions,
    The Banks in the UK decided in the 60s that more money could be made by taking a gamble on the world stock markets and creating a Financial service industry based on Land stock and house prices.
    Sadly in a recession we will neither be able to feed or clothe ourselves and may even freeze to death because we have no coal...
    and as for maintaining a creadable armed forces....... forget it
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  5. Thats what they should use prisoners in our prisons for. Coalmining.
    • Like Like x 1
  6. I havent read the report but i can assume that the arabs are IMPORTING coal at equevalent cost of $25 dollars per barrel and EXPORTING crude oil at $120 plus dollars per barrel.

    South Wales has over 100 YEARS of VIRGIN coal still available.

    Is some clever fcukwit sitting on the ownership of the land where this coal is buried?

    Dont forget when maggie sold off the mines she also sold the land.

    Some mines were sold for just £1.

    Guess which arab countries bought these worthless plots of land?

    wales recently closed its last working pit.

    I'm not sure of the details but it appears that just 1 new pit has been started. Not because of suitable availability but because the land was not for sale.
  7. If you took the time to talk to a mine engineer or educated miner they will tell you you this "You cannot re-open an old mine" between the rotten supports and water flooding its a death trap.
    • Like Like x 1
  8. Now ,Now.

    Pointing the finger at the absolute incompetense of the Labour and Conservative governments from 1960 to 2008 is just not acceptable old boy.

    Even the brilliant churchill was a fcukwit puppet when it came to replacing the .303.


    fill your boots

  9. Coal for the Gulf.
    Hard to believe but as has been said sell, Oil Gas, at $125 and buy the equivalent quantity of coal at $25.
    Big initial infrastructure cost but if the people of the Gulf do not have the readies now then they never will have. (unless $200 a gall).
    A friend help do a study for Nuc Power for Hong Kong years ago when still a Brit colony, fresh water was the weak spot in those days, for most was imported from China and if the mainland had a problem delivering, HK was in serious trouble very quickly.
    Wonder what The US will say about a Frog Nuc for Abu Dhabi, no nuc one side of gulf and help ya self on the other.
    I am assured that Dubai will introduce VAT at end of year.
  10. Hello,

    I often walk across a number of old coal mines,round here they have not been bought up by Arabs,they have been turned into "country parks".

    I am also familiar with heavily unionised British industry.
    Every day men worked an hour a shift for well above the average wage and still thought they were hard done by.
    Every year the old hands would take a month off sick,because everyone else did.
    Every year the union would put in an outrageous pay claim.
    Every time the management tried to improve efficiency strikes were threatened.
    Every year the factories lost millions.

    Then everyone wondered why the factories closed and all the work went abroad.


    Edited to correct a spelling mistake.
    • Like Like x 1
  11. I'm not sure of the "mining rights on a given patch of land syndrom" but looking at the opencast mining easy option if you live in an area with coal just below the ground i'd fcuk off .

    In 1947-48 in NORTHERN Germany the british ocupation forces FORCED the inclusion of THE "WORKS COUNCIL" worker colabiration/control over the workers and employers thereby excluding DIRECT UNION and vigilanty (british style) confrontation into the DEMOCRATIC BUNDES REPLUBLIC DEUTSCHLAND creation.

    The military wanted to include/ impose the self same rights and laws into the british system BUT WERE TOLD TO FCUK OFF BY AAAAAAAALLLLLL the political parties INCLUDING THE LIB DEMS.

    And before anyone thinks this is a UFOI> I spent 10 years in germany working with the guys who sat at the same table in 1947 helping the brits to word the documents.


    It was in Bielefeld.

    Even the septics and frogs accepted the documents THE SAME DAY.

    For those that are up thier own backend dont read the following, you simply wont undersatand.????????????

    A works council requirement means that any union has no direct legal involvement with the workers and/or therefore a shop steward CANNOT CALL A LIGHTNING STRIKE- -----thinks NO STRIKES 1960 to 1980?.

    An employer CANNOT sack or employ Anyone without the works council agreeing or at least debating crap.- JOBS FOR THE BOYS (ORRIFICES INTHE UK please note) EXCLUDED!!!!!!!!

    1990 ish a certain bsigadier- leutenant making visits to raoc units with adc making mega notes and subsequently landing on the board of naafi germany. bread and beef anyone?????