"We (in northern emirates ) can save Dh800 million worth fuel during the peak summer months of the years, as we burn expensive diesel  for power generation, which if replaced with natural gas available with Abu Dhabi, can have a lasting impact on the economy," said Khalid Al Awadi operations manager at Emirates General Petroleum Company (Emarat), while speaking at a conference. Abu Dhabi, he suggested, can burn diesel instead of natural gas, which can be supplied to the northern emirates. "By doing this we can save energy which is going waste. It constitutes best use of natural resources," he said.

He said that recommendations have been made to the Ministry of Petroleum, twice highlighting the significance of energy swap.

"There has been no action till now," he said, adding that everything is in place,  the pipeline networks, all you need is a go ahead signal. The opportunity for integrated pipelines had come up three years ago, we must exploit it to the fullest."

Elaborating the idea, Khalid Al Awadi said that the integrated pipelines would have a single owner  or holding company, to be set up after forming gas pipeline owners' union, who will  sort out issues of gas transportation, its  regulations, and cross-border tariffs among federating units.

"There is urgent need for a gas law in the country, in this connection, on the lines of Europe where different companies are selling the same commodity like electricity," he said.

At present, he said that there are different regulations at the emirate level, which are stumbling blocks in the way of energy transportation.

Gas shortage:

At the moment, the UAE is facing a net shortage of natural of 1.5 BCF gas, as there is a demand of 5.4 BCF growing at an annual  rate of 10-13 per cent while the nation has a supply of 4 BCF only.

The deficit currently, Al Awadi  said, was being met through consuming expensive diesel, due to which there is a high cost of consuming gas which can be met by sourcing gas from Iran or Qatar.

For alternative means of fuels, he said nuclear energy can fill the gap, but will take many years to come on line.

He asked for combined cycle electric turbines, to save energy.

There is need to have an integrated pipelines network, for a cost effective, reliable and efficient supply of gas across the country.

"We have three pipeline networks in the country transporting gas to their customers in their  respective emirates — if these pipelines are interconnected at national level this can result in tremendous economic benefits," said Khalid.