Article

Charting the Course for Hydrogen Pipelines Across the UAE by 2040

With unified, integrated planning, the proposed UAE network could play a critical role in fostering hydrogen supply and demand.

A growing number of national governments and gas infrastructure companies across the globe are developing plans for the construction of national hydrogen transmission networks. Germany’s energy regulator recently approved the country’s updated network plan targeting about 9,000 kilometers of hydrogen pipelines by 2032.1 Other European countries, including the Netherlands and Spain, have also established near-term plans for building their national hydrogen networks. Another prime example is the European Hydrogen Backbone, a collaboration among 33 European energy infrastructure operators. Supported by Guidehouse, the project’s goal is to build a 31,000-kilometer network by 2030.2

Closer to the Gulf region, Hydrom, Oman's green hydrogen orchestrator, has set out a master plan to connect Oman’s key economic and industrial zones by building about 2,000 kilometers of pipelines by 2050.3

 

Prioritizing hydrogen infrastructure in the UAE

Amid the backdrop of this trend lies a vision set out by the UAE, whose National Hydrogen Strategy was issued in 2023 to position the region as a top global producer of low-carbon hydrogen as early as 2031. The strategy, which defines near-term demand and supply targets, recognizes the importance of developing a hydrogen transmission network for the creation of a local and export market. It also acknowledges that transmission pipelines are the cheapest alternative for transporting large volumes of hydrogen.

In its 2022 Abu Dhabi Low Carbon Hydrogen Policy (2022), the Abu Dhabi Department of Energy (DoE) defines the high-level governance and industry structures that will guide and support hydrogen development activities across Abu Dhabi.5  The policy also notes that future hydrogen transmission pipelines will likely be a natural monopoly arrangement regulated by the Abu Dhabi DoE.

 

Repurposing UAE’s existing gas transmission network

The prospect of a UAE-wide dedicated hydrogen transmission network is largely based on the potential to repurpose the UAE’s existing gas transmission network. Today, the UAE’s gas network covers about 3,200 kilometers, transporting natural gas from offshore and onshore gas fields to major power and water production facilities and heavy industry across the entire country.

The hydrogen transmission network proposal is based on an analysis of the UAE’s natural gas transmission network, pipeline capacities, locations of critical power and water production facilities, and projected hydrogen demand across the country.

This vision offers snapshots of what a dedicated hydrogen network is projected to look like by 2030, 2035, and 2040.

 

Figure 1: Natural Gas Transmission Network

UAE Hydrogen Map 1

You can activate magnify by hovering over an image and pressing Ctrl twice.

 

The vision: A 2,200-kilometer network by 2040

The proposed hydrogen transmission network would benefit from the UAE’s offshore blue hydrogen potential, vast solar photovoltaic technology resources, untapped offshore gas storage potential, and strategic export terminal infrastructure.

By 2040, the network would expand across the entire country to a projected total of 2,200 kilometers—including 1,300 kilometers of new pipeline and 900 kilometers of repurposed gas pipeline. The expanded network would enable transport of low-cost hydrogen supply to all six of the UAE’s hydrogen oases along with export terminals at KEZAD, Jebel Ali, and Khor Fakkan.6  It would also potentially interconnect with neighboring hydrogen networks in Oman and Saudi Arabia.

The network would feature two main pipeline corridors originating in the western part of the country near the industrial city of Ruwais and terminating in Khor Fakkan near Fujairah:

  • The Coastal Corridor would connect all six hydrogen oases (largely along the coast) and link proposed hydrogen export terminals at KEZAD, Jebel Ali, and Khor Fakkan, enabling exports to international markets. Development would start with the Ruwais-to-Jebel Ali segment, which would be comprised primarily of repurposed pipeline infrastructure and expected to be operational by 2035. This segment would enable northbound transport of blue hydrogen produced in Ruwais to the other oases, complemented by green hydrogen produced along the corridor. From 2035 to 2040, the corridor would expand northbound with the development of the Ruwais-to-Khor Fakkan segment, which would be largely made up of new pipeline infrastructure.
  • The Inland Corridor would be loosely parallel to the Coastal Corridor, running inland and only through the Ruwais and Khor Fakkan hydrogen oases. Its southern segments would feature exclusively new pipelines, while the northern segments would include new and repurposed pipelines. The corridor’s primary purpose would be to collect green hydrogen produced in the Al Dhafra region, toward Al Ain, and along the Oman border.

 

Figure 2: Proposed Hydrogen Transmission Network by 2040

 UAE Hydrogen Map 2

 You can activate magnify by hovering over an image and pressing Ctrl twice.

 

The need for market planning and regulatory clarity

Successful development of a national hydrogen network in the UAE will require a unified, integrated planning approach, as well as greater market and regulatory clarity. Stakeholders will need to focus on:

  • National, integrated energy system planning. Establishing a unified, aligned vision of natural gas, hydrogen, carbon, and electricity infrastructure requires a collaborative approach. Developing an effective plan will necessitate cooperation among many stakeholders, including the UAE’s Ministry of Energy & Infrastructure, Abu Dhabi DoE, Dubai’s Regulatory and Supervisory Bureau, Abu Dhabi National Oil Company, TAQA Transmission, Dubai Electricity and Water Authority, and Etihad Water and Electricity. This integrated energy system planning effort should assess existing infrastructure, supply points, hydrogen demand clusters, export terminals, and interconnectors with neighboring countries.
  • Offtaker and market orchestration. Hydrogen infrastructure development requires a clear view of future hydrogen demand to inform transmission infrastructure, supply, and production planning. One way to do this is to put out a call for interest—a non-binding consultation process—with offtakers to understand potential hydrogen demand needs, including locations, estimated supply quantities, and the probability of demand materializing. Spanish gas transmission system operator Enagás, for example, has conducted a process like this to more clearly define its hydrogen transport and storage visions.7
  • Hydrogen infrastructure regulations. Regulatory, licensing, and permitting frameworks must also be established to guide projects across the different segments of the hydrogen and carbon value chains. Regulatory clarity is critical for investors and energy infrastructure companies as they navigate the financing and project development processes.

With the right guidance and collaboration, stakeholders can help the UAE achieve its hydrogen goals and position the country as a leader as it generates hydrogen supply and demand.

 

Download Full Report


Alvaro Lara, Associate Director

Ameer Jasat, Associate Director

Noor El Shatlawy, Senior Consultant

Rik van Rossum, Senior Consultant

Hassan El Sheikh, Consultant

Yasin Sagdur, Consultant


Let Us Guide You

Guidehouse is a global consultancy providing advisory, digital, and managed services to the commercial and public sectors. Purpose-built to serve the national security, financial services, healthcare, energy, and infrastructure industries, the firm collaborates with leaders to outwit complexity and achieve transformational changes that meaningfully shape the future.

Stay ahead of the curve with news, insights and updates from Guidehouse about issues relevant to your organization and its work.