Business | Oil & Gas
More gas infrastructure needed in Middle East
There is a pressing need for more natural gas infrastructure in the Middle East region to be put in place for electricity generation and for a growing petrochemical industry, said Morgan Stanley in its latest oil and gas research report.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 23:40 November 18, 2008
Abu Dhabi: There is a pressing need for more natural gas infrastructure in the Middle East region to be put in place for electricity generation and for a growing petrochemical industry, said Morgan Stanley in its latest oil and gas research report.
The Middle East has 40 per cent of the world's remaining gas reserves but represents only 12 per cent of the current production, the report said.
It said an emerging feature of the region's markets is that core oil 'producers' are consuming more.
"The outlook for econ-omic growth and oil demand appears relatively robust, based on a young population, subsidies, oil prices greater than $60 (Dh220) a barrel and strong current accounts," said Morgan Stanley.
Challenges
The report said the UAE is focused on meeting its increasing natural gas demand but is hindered by the fact that a great deal of its gas reserves are tight or sour and therefore, require additional capex and time to develop.
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