Utilisation of natural gas in the Middle East to rapidly overtake oil as governments commit to massive investment in the industry
(PRLEAP.COM) The Middle East, including Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the UAE, has huge reserves of natural gas, accounting for 42% of the world’s proven gas reserves. Country-wise, Iran, Qatar, Saudi Arabia and the UAE have the second, third, fourth and fifth largest natural gas reserves in the world.
To put these reserves into context, the UAE is estimated to have natural gas reserves that will last for anything up to 170 years.
Throughout the region, vastly increased domestic consumption of electricity, linked to growing demand for domestic hydrocarbons for power generation, petrochemicals and desalination are the incentives for increased usage of natural gas - Saudi Arabia, as an example, has made increased natural gas production a priority, aiming to triple output to 15 billion cubic feet a day by 2009.
Growth in the gas sector is taking place in the domestic market, where the use of natural gas has increased dramatically (in Abu Dhabi, for example, gas consumption has doubled over the last decade to its current level of 4 billion cubic feet a day), as well as in the highly lucrative export market, with global natural gas demand on a steep upward curve.
Governments throughout the Middle East region are therefore committing substantial investment to ensure that their natural gas infrastructure is in shape to take full advantage of the growth in the sector.
South Pars, Iran’s largest natural gas field, with estimated reserves of 940 trillion cubic feet, has already attracted over US$15 billion in investment, and in line with the importance that the Iranian government attaches to the development of the country’s gas supply grids, the National Iranian Gas Company (NIGC) has just been authorised to invest a further US$1.9 billion in 2005. This amount will be used primarily to further expand the country’s gas supply grids. Iran also recently signed a deal to supply the UAE with 15 million cubic meters of gas a day.
Elsewhere, Turkey will import up to seven billion cubic meters of gas in 2005.
Qatar is another country that is highly committed to an increase in its output, and has deals in place that will see it become a major international energy provider - the Qatari government firmly believes that this is where the country’s economic future lies, and is currently developing an integrated natural gas pipeline grid that will connect Qatar, the UAE and Oman, with the possibility of a sub-sea connection linking Oman and Pakistan.
Significantly, a report commissioned by the European Union has found that a gas pipeline linking the GCC to Europe would be economically viable, and could become a reality by 2025. Part of a much larger plan to link the power grids and water systems of the GCC countries, the projected pipeline would have huge economic benefits for the region, particularly with natural gas consumption throughout the EU expected to double over the next 15 years.
In line with these dramatic developments in the natural gas sector, Middle East Electricity exhibition, the power behind the Middle East energy industry has announced the launch of a dedicated sector of the show for the natural gas industry.
Alongside the current vertical sectors for power generation, new & renewable energy and lighting, the natural gas sector is a dedicated focus area for 2006, and will give international and regional companies operating in the natural gas industry a bespoke showcase for their products and services, all of which will be in great demand as governments throughout the region seek to maximise their effectiveness in both the domestic and export markets.
“Created as the result of feedback from exhibitors and visitors to Middle East Electricity exhibition, coupled with the phenomenal growth of the market and the increase in both domestic gas consumption and gas exports, we know that this new sector of the exhibition will play a valuable role in the achievement of the region’s ambitions” said Sarah Woodbridge, Exhibition Director, Middle East Electricity.
“Over 3,600 key decision makers came to Middle East Electricity 2005 specifically to source companies and gather information on the rapidly expanding natural gas industry. As always, with firm support from the UAE Ministry of Energy, we are committed to deliver an event that will create the right environment for the industry to grow dynamically, benefiting from exposure to, and interaction with, companies that will bring global industry best practices to the region” she added.
Middle East Electricity, which celebrated 30 successful years in the region this year with a record-breaking event both in terms of size and number of visitors, is already looking set to grow even more. The 2006 exhibition, which will take place from the 5th to 8th of February at Dubai International Exhibition Centre is already over 70% sold out, and will feature many new country pavilions, including ones from Brazil, Poland and Croatia in addition to the 16 pavilions present at Middle East Electricity 2005.
To put these reserves into context, the UAE is estimated to have natural gas reserves that will last for anything up to 170 years.
Throughout the region, vastly increased domestic consumption of electricity, linked to growing demand for domestic hydrocarbons for power generation, petrochemicals and desalination are the incentives for increased usage of natural gas - Saudi Arabia, as an example, has made increased natural gas production a priority, aiming to triple output to 15 billion cubic feet a day by 2009.
Growth in the gas sector is taking place in the domestic market, where the use of natural gas has increased dramatically (in Abu Dhabi, for example, gas consumption has doubled over the last decade to its current level of 4 billion cubic feet a day), as well as in the highly lucrative export market, with global natural gas demand on a steep upward curve.
Governments throughout the Middle East region are therefore committing substantial investment to ensure that their natural gas infrastructure is in shape to take full advantage of the growth in the sector.
South Pars, Iran’s largest natural gas field, with estimated reserves of 940 trillion cubic feet, has already attracted over US$15 billion in investment, and in line with the importance that the Iranian government attaches to the development of the country’s gas supply grids, the National Iranian Gas Company (NIGC) has just been authorised to invest a further US$1.9 billion in 2005. This amount will be used primarily to further expand the country’s gas supply grids. Iran also recently signed a deal to supply the UAE with 15 million cubic meters of gas a day.
Elsewhere, Turkey will import up to seven billion cubic meters of gas in 2005.
Qatar is another country that is highly committed to an increase in its output, and has deals in place that will see it become a major international energy provider - the Qatari government firmly believes that this is where the country’s economic future lies, and is currently developing an integrated natural gas pipeline grid that will connect Qatar, the UAE and Oman, with the possibility of a sub-sea connection linking Oman and Pakistan.
Significantly, a report commissioned by the European Union has found that a gas pipeline linking the GCC to Europe would be economically viable, and could become a reality by 2025. Part of a much larger plan to link the power grids and water systems of the GCC countries, the projected pipeline would have huge economic benefits for the region, particularly with natural gas consumption throughout the EU expected to double over the next 15 years.
In line with these dramatic developments in the natural gas sector, Middle East Electricity exhibition, the power behind the Middle East energy industry has announced the launch of a dedicated sector of the show for the natural gas industry.
Alongside the current vertical sectors for power generation, new & renewable energy and lighting, the natural gas sector is a dedicated focus area for 2006, and will give international and regional companies operating in the natural gas industry a bespoke showcase for their products and services, all of which will be in great demand as governments throughout the region seek to maximise their effectiveness in both the domestic and export markets.
“Created as the result of feedback from exhibitors and visitors to Middle East Electricity exhibition, coupled with the phenomenal growth of the market and the increase in both domestic gas consumption and gas exports, we know that this new sector of the exhibition will play a valuable role in the achievement of the region’s ambitions” said Sarah Woodbridge, Exhibition Director, Middle East Electricity.
“Over 3,600 key decision makers came to Middle East Electricity 2005 specifically to source companies and gather information on the rapidly expanding natural gas industry. As always, with firm support from the UAE Ministry of Energy, we are committed to deliver an event that will create the right environment for the industry to grow dynamically, benefiting from exposure to, and interaction with, companies that will bring global industry best practices to the region” she added.
Middle East Electricity, which celebrated 30 successful years in the region this year with a record-breaking event both in terms of size and number of visitors, is already looking set to grow even more. The 2006 exhibition, which will take place from the 5th to 8th of February at Dubai International Exhibition Centre is already over 70% sold out, and will feature many new country pavilions, including ones from Brazil, Poland and Croatia in addition to the 16 pavilions present at Middle East Electricity 2005.
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