The GCC and the European Union (EU) must engage in serious dialogue in areas of gas exports and improving the functioning of international oil markets, an energy expert told a conference.

Moreover, the Gulf states must focus on a gas pipeline to Europe as demand is projected to rise four-fold by 2030 in the EU.

Several proposals have been discussed for a pipeline from Qatar to Turkey and onward to the European markets for gas delivery, but political and other issues have yet to be sorted out.

"The prospects for gas from the Gulf to Europe are interesting, but fruitful dialogues are yet to take place. The Gulf states must focus on a pipeline to Europe," Dr Giacomo Luciani, co-director, Robert Schuman Centre for Advanced Studies, Florence, said in his address at the Emirates Centre for Strategic Studies and Research (ECSSR) annual energy conference which ended yesterday.

Demand for gas in Europe is estimated to soar to 632 billion cubic metres (bcm) in 2030 from the current 187 bcm, thus accounting for 34 per cent of Europe's energy demand.

Currently, very little gas supplies flow from the Gulf to European markets which source mainly from Russia, Norway and Algeria.

"If the GCC states do not take quick initiatives for becoming a reliable gas supplier to Europe, Iran may become the supplier due to its vast gas reserves. Iran is also more aggressive in pipeline exports to Turkey which gives it an advantage," he said.

"Both sides must engage in constructive dialogue for gas supplies and also for improving the functioning of international oil markets," he stressed.

Luciani also underscored the need for the Gulf states to agree on gas trade policies within the GCC.

"Right now there is no significant trade and some GCC states need more gas. There's no practical agreement to allow free trade for competitive gas in the GCC," he said, adding that what is needed is an inter-connecting gas pipeline in the GCC and producers to sell in a competitive fashion. "It is a monopolistic market now," he noted.

The Dolphin Gas Project is the first step in the right direction. "But we are waiting to see the project implementation," he said.