GCC 'may face gas shortage by 2015'
Abu Dhabi, August 29, 2013
Gas shortage in the GCC will become more pronounced by 2015 as demand stays strong and supply struggles to keep pace, said a recent report.
The report published by global consultancy firm, Booz & Company, entitled ‘Gas shortage in the GCC – how to bridge the gap,’ suggests that increasing power consumption, depleting oil fields and long term gas export commitments have limited the local supply of gas in the region.
The report further adds that GCC countries can address the supply demand imbalance by raising local gas prices gradually, improving energy efficiency and investing in alternative methods to overcome the shortage.
Experts will outline recent development in the GCC gas and power sector and discuss the regional gas supply outlook and its impact on prices at the Power + Water Leaders Forum to be held at the Abu Dhabi National Exhibition Centre on September 23.
“The GCC’s gas shortage can be resolved,” said Robin Mills, head of consulting at Dubai-based Manaar consulting, who is a key speaker at the event.
“But timing is crucial and waiting for solutions to materialise might mean that GCC countries will have to burn more valuable liquid fuels to meet demand.
“Governments need a mix of short- and long-term measures to address the gas shortage. They need to invest in new developments to increase production, increase local gas prices steadily to encourage efficiency, and expand the use of alternative sources in the energy mix.
“Gas sector investment is expanding rapidly across the GCC. Some of the most interesting projects include the Khazzan tight gas project in Oman, the Bab and Shah sour gas projects in Abu Dhabi and the Emirates LNG import terminal in Fujairah.
“Other GCC countries equally maintaining their focus on gas developments include Qatar with Barzan and Saudi Arabia with the Karan and Wasit projects,” Mills added. - TradeArabia News Service