Abu Dhabi indefinitely postponed the construction of the first onshore LNG import facility in the busy oil port of Fujairah in favor of a floating supply terminal.

Bloomberg reported that the state-controlled Emirates LNG LCC, a joint venture of International Petroleum Investment Corporation (IPIC) and Mubadala Petroleum, is planning to boost Emirates’ gas purchases by hiring a floating storage vessel. Located to the west of Abu Dhabi, the vessel is to be based at the industrial town of Ruwais where there is an oil refinery and crude loaded port. According to Gulf Business, the two companies planned to use the facility to import 9m tons of gas a year.

Ranked seventh among the world’s largest reserves for both oil and gas, the UAE, however, is seeking to augment its gas supply amid the rising growth.

Robin Mills, CEO of Qamar Energy in Dubai, told Bloomberg that ”The UAE is facing a crunch in gas supplies for power until the country’s nuclear plants come online.

The floating terminal will help bridge the gap. They are casting around for options for Emirates LNG to see if it still makes sense.”