Gas
reinforces the Middle East’s role as a key energy supplier
Posted: 12 May 2004
While world demand for gas is set to increase as much as five-fold
by 2030, gas-rich countries in the Middle East are set to play a
key role in the global gas market, reinforcing the region’s
position as a key energy provider, said Charles Watson, Shell Gas
and Power Regional Business Director for the Middle East, South
Asia and Africa, in a keynote address at the opening today of the
Middle East Gas and LNG Forum 2004 in Bahrain.
Qatar, Oman, Abu Dhabi and Iran already have projects underway
he said, but: “the other Middle East resource holders who
will play an increasing role in entering the business in the next
few years should not be ignored”.
A major challenge for all resource holders, however, might be the
shortage of construction capacity that “may well limit the
pace of new supply.” Industrial construction in the Middle
East was booming and there was already a resulting shortage of both
skilled labor and manpower.
But, if predictions of the demand for LNG alone were correct, by
2030 the world would have to produce an additional 500 million tonnes
per annum and an average of five new LNG trains would have to be
built every year for the next 20 years as well as the considerable
upstream shipping and downstream infrastructure requirements.
In addition, Mr. Watson pointed out the “long value chains”
involved in realizing gas projects, the requirement for significant
capital investment and: “investors need to be confident that
they will get a return on their money, looking carefully at the
economic and political context.”
Commented Mr. Watson: “These kinds of factors underline that
the success of gas projects depends very closely on the overall
climate in which they are being developed. That means supportive
and stable regulatory and political frameworks are vital. It means
predictable and long-term relationships with government and commercial
frameworks supported by long-term contracts are essential. And,
of course, the infrastructure and skilled manpower need to be in
place to make these projects work.”
For more information see www.shell.com
Posted by Richard Price,
Editor Pipeline Magazine
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