NEW OPPORTUNITIES
Ras Al Khaimah has undertaken several initiatives to diversify its gas sources and assets, both locally and abroad.
With several downstream industries relying on gas for energy and power supply, the diversification and security of gas imports, as well as domestically sourced gas, is crucial for Ras Al Khaimah's economy.
The UAE is a net importer of gas, which is used to generate 98% of its power. Since its establishment in 1984, the state-owned company RAK Gas has been exclusively responsible for sourcing and supplying gas to the northern-most Emirate of Ras Al Khaimah.
RAK Gas states that its mission is to generate growth and revenues for the government while ensuring a secure supply of energy in the fast-growing Emirate. In doing so, it must meet increasing demand from large and highly energy-intensive industries, including downstream customers such as ceramic manufacturers, the cement industry, glass factories, and other industrial users.
The establishment of RAK Gas was linked to the extraction and processing of gas from the domestic Saleh field, situated 45km offshore. Output from the Saleh field peaked at about 70 million cubic feet of gas per day in 1986; then, overall production declined, and the field produced intermittently from 1996 for a further 20 years.
Following the eventual production shutdown of the Saleh field in 2016, RAK Gas has sourced most of its gas through the Dolphin Pipeline, which meets the Emirate's entire industrial energy requirements and 30% of the total energy requirements of the UAE.
The Dolphin Pipeline, constructed in 2003, remains the largest energy-related venture in the region. The pipeline is operated by Abu Dhabi's Dolphin Energy Limited and transports natural gas from Qatar's North Dome gas field to the UAE and Oman. Despite regional tensions during 2017, Qatari and UAE officials allayed fears that gas flows from the North Dome would be interrupted.
In addition to the 2 billion cubic feet of natural gas delivered per day to the UAE through the Dolphin Pipeline, of which some is bought by RAK Gas, RAK Gas also sources gas from Umm Al Quwain, and the Bukha and West Bukha fields in Oman.
The company continues to explore the potential and opportunities of picking up assets in international markets. To this end, RAK Gas has built exploration portfolios in Tanzania, Malawi, Egypt, and Somaliland, which it claims are excellent geological areas with an extremely high potential for finding oil and gas.
Within Ras Al Khaimah, RAK Gas launched an upstream licensing round in the second quarter of 2018 allowing prospective companies to bid for acreage to explore for commercially feasible deposits for extraction.
Said to be a priority project for the company, the additional gas discovered in these domestic fields will offset the decline in gas production within Ras Al Khaimah and further support the ceramics, glass and cement industries while reducing costs for consumers.
The licensing round follows RAK Gas' review of the Emirate's onshore and offshore sub-surface potential. It used play-based exploration (PBE) to build its domestic exploration portfolio, which has been packaged into four offshore and three onshore concessions spanning a total of 4,000sqkm. The complex geology, which is unique to Ras Al Khaimah, creates multiple play opportunities. Using PBE methods, prospect probabilities are weighted against plays for a more nuanced analysis and better investment decisions. RAK Gas has also recently acquired 3D seismic over the offshore blocks to increase the accuracy of identifying prospective hydrocarbon deposits.
The Saleh field is also being offered in the licensing round as RAK Gas believes there are significant resources still to be produced there. There is also an oil discovery called RAK B that will also be offered as part of the round.
The initial bid round was launched in late March 2018 with data rooms opened in April both in Ras Al Khaimah and London. Prospective bidders have also had the opportunity to view the new offshore 3D seismic. Bids for the onshore and offshore blocks will be submitted in mid-November, with the final selection to be announced in late November 2018.
The Emirate is counting on new domestic opportunities to reduce reliance on piped gas while continuing to power the rapid growth of the economy and its energy-intensive industries.

TABLE OF CONTENTS
Interview
ndrea Di Gregorio, , Director of Energy Efficiency and Renewables , RAK Municipality Department
TBY talks to Andrea Di Gregorio, Director of Energy Efficiency and Renewables of the RAK Municipality Department, on the Emirate's overall strategy, specific programs, and early supporters of energy efficiency and renewables.
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Abdulrhman Al Shayeb Al Naqbi, Director General, Ras Al Khaimah Department of Economic Development (RAK DED)
TBY talks to Abdulrhman Al Shayeb Al Naqbi, Director General of the Ras Al Khaimah Department of Economic Development (RAK DED), on improving the ease of doing business, key diversification pillars, and the impact of new VAT.
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Sheikh Ahmed bin Saqr Al Qasimi, Chairman, Ras Al Khaimah Economic Zone (RAKEZ)
TBY talks to Sheikh Ahmed bin Saqr Al Qasimi, Chairman of the Ras Al Khaimah Economic Zone (RAKEZ), on offering investors a global platform, creating a one-stop shop, and the strategic comparative advantages of access to the Indian Ocean.
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Manu Mehra, CFO, RAK Investment & Development Office (RAK IDO)
TBY talks to Manu Mehra, CFO of the RAK Investment & Development Office (RAK IDO), on the role of free zones in diversification, the benefits of smart state intervention, and the keys most needed for a strong manufacturing sector.
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Yousef Esmaeel, Chairman, Supreme Committee of Saud Bin Saqr Establishment for Youth Enterprises Development (RAK SME)
TBY talks to Yousef Esmaeel, Chairman of the Supreme Committee of Saud Bin Saqr Establishment for Youth Enterprises Development (RAK SME), on incentivizing young people, working with local government to encourage entrepreneurialism, and the role of SMEs in the UAE marketplace.
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Abdullah Al Abdooli, Managing Director, Al Marjan Island
TBY talks to Abdullah Al Abdooli, Managing Director of Al Marjan Island, on the continuous growth of the real estate market in RAK, its robust investment landscape, and the Emirate's ambitious plans to develop its tourism sector.
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Hassan Hamdan Al Alkim, President , American University of Ras Al Khaimah (AURAK)
TBY talks to Hassan Hamdan Al Alkim, President of the American University of Ras Al Khaimah (AURAK), on the consequences of growing global demand for education and AURAK's efforts to attract students from beyond the Emirate.
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Gurumadhva Rao, Vice Chancellor, RAK Medical & Health Sciences University (RAKMHSU)
TBY talks to S. Gurumadhva Rao, Vice Chancellor of the RAK Medical & Health Sciences University (RAKMHSU), on the further development of higher education, its key differentiators, and the need for qualified doctors.
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Taner Topcu, Director, Ras Al Khaimah Economic Zone’s (RAKEZ) Academic Zone
Taner Topcu holds a bachelor's degree in Public Administration from Anadolu University in Turkey. He is an industry expert with more than 20 years of successful experience in education, hospitality, business development, and customer relations. Prior to joining RAKEZ in 2015, Taner worked at TECOM Investment's Education Cluster in Dubai Knowledge Village and Dubai International Academic City, where he worked in operations, business development, and account management. He also worked at Aabar Investments in Abu Dhabi as a Business Development Manager and at Dubai's Knowledge and Human Development Authority as a Director of Engagement Operations.
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