GCC to face gas shortage by 2015
Increasing power consumption one of the reasons for the shortage
According to a recent report published by global consultancy firm, Booz & Company, gas shortage in the GCC will become more pronounced by 2015 as demand stays strong and supply struggles to keep pace.
The report, titled Gas Shortage in the GCC - How to Bridge the Gap, suggests that increasing power consumption, depleting oil fields, gas exploration 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.
In an effort to bring the gas sector back on track, Robin Mills, head of consulting at Manaar Energy, will outline recent developments in the GCC gas and power sector and discuss the regional gas supply outlook and its impact on prices at the second Power + Water Leader's Forum on September 23 at the Abu Dhabi National Exhibition Centre.
"The GCC's gas shortage can be resolved," said Mills. "But timing is crucial and waiting for solutions to materialize 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," said Mills.