Crescent Middle East has yet to realise full gas potential

Sharjah: The Middle East region is still in the comparatively early stages of development of its natural gas sector and has yet to fulfil the full potential of its resources, according to a senior executive from Dana Gas.

Speaking on the first day of the 14th annual Middle East Gas (MEGAS) Summit, taking place at the Radisson Blu Hotel on Yas Island, Abu Dhabi, from March 28 to 31, Majid Jafar, Executive Director of Crescent Petroleum and a member of the board of Dana Gas PJSC, said that the Middle East still accounts for only 12 per cent of global gas production despite holding 41 per cent of world gas resources.

He also highlighted the rapid growth in regional gas demand caused by increasing population and economic growth leading to higher needs for both power plants as well as local industry.

He said that over $160 billion (Dh587.5 billion) in investment is required in the regional gas industry in just the next five years, according to the latest study by Apicorp.

"Our region is uniquely placed to serve global markets with both oil and gas supplies, and the region itself is also a rapidly growing gas market," Jafar said in his presentation. "Despite the high resource potential however, many countries in the region currently have a deficit in gas supplies, and the major policy challenges include energy diversification and demand management most especially the issue of local price subsidies for gas and electricity, leading to high demand and a burden on government budgets."

MEGAS 2010 is recognised as one of the premier events on the oil and gas calendar, and features panel discussions and interactive activities that allow participants to discuss the significant events of the past year.