Financial Times FT.com

Saudi Arabia upsets UAE pipeline plans

By Carola Hoyos in London and Roula Khalaf in Dubai

Published: July 11 2006 19:03 | Last updated: July 11 2006 19:03

A $3.5bn pipeline project to supply the United Arab Emirates with Qatari gas was on Tuesday thrown into confusion after Saudi Arabia raised objections, saying the pipeline crossed its territory.

Oil companies and Gulf officials were baffled by the reservations, which apparently came in a letter sent to international partners, including banks financing the pipeline.

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