(MENAFN – Syndication Bureau)
In both Asia and Europe, liquefied natural gas comes from the Middle East. Gas will boost the region’s domestic economy as well as export revenues. But new, complex gas resources will cost hundreds of millions of dollars, and government oil companies have been called upon to do so. To do this, they need to make significant improvements in their comfort zone. And those markets in Asia and Europe have to bet as they do.
The Middle East gas was originally the result of oil extraction, was used in small quantities locally, and its profits were burned or burned. In the 1980’s and 1990’s, population growth, increased demand for electricity, and the expansion of petrochemicals and other industries eventually used this flame to increase productivity.
A.D. Oil booming economic growth in the 2000s led to increased demand for local gas, while investment barriers and lower prices forced new production. Political disagreements and unrealistic trade prospects have hampered gas pipelines in the region, and as a result, many economies — Kuwait, Dubai, Egypt, and Jordan — sometimes had to import LNG from outside Australia. Qatar became the world’s largest LNG exporter based on the Great North.
Today, the region’s gas industry is entering a new phase. With the exception of Qatar, Iran, and Iraq, the Middle East’s new resources are too expensive to produce in the archives. Governments have increased gas prices in most countries, but they remain below the price of new products. Demand growth has slowed, but it is still going strong.
Like their international counterparts, such as LL, Total and Ekonor, the Middle East’s national “oil” companies (NOCs) are shifting their focus from oil to gas. At present, China’s interest in Asia is growing. While Europe’s long-term consumption is flat or declining, its own production is still declining rapidly, meaning it needs to import more — and not all of it from Russia.
So in the 2020s and 2030s, gas seems to be more in demand than oil, which can be more competitive with electric vehicles. The globalization of LNG trade means that, in part due to Qatar’s potential, gas can be supplied to more diverse and volatile markets. Every country on the coasts of Europe, Asia and Africa that does not export LNG will already import or intend to do so.
Thus, the Middle East ANCs set ambitious goals to grow their gas businesses. Saudi Arabia wants to invest $ 150 billion over the next decade to meet half of its current demand for gas and increase its gas production from 14 billion cubic feet per day to 23 billion cubic feet (BCF). As the United States has made great strides, this rare gas (small and “narrow” gas from low-altitude rocks) needs to be developed. Meanwhile, the state’s giant Saudi Aramo is also looking beyond the coast to the cold Arctic, where it is discussing partnerships to develop the LNG in Russia.
Abu Dhabi’s national oil company, despite political disagreements, wants to make the United Arab Emirates self-sufficient, rather than imports from Qatar, as it does now. Toxic, Perishable Contamination A new “sour” gas with high levels of hydrogen sulfide develops 1.5 BC per day. In partnership with Total, it also looks at unusual gas, with the expectation of 1 BCF per day by 2030. Much of this gas will go to feed the $ 45 billion downstream basin investment in petrochemical and refineries.
Oman led the region’s unusual gas industry. As domestic consumption increased, the LNG export factory was scarce, but the development of BP, the world’s largest project outside of North America, benefited the sultanate.
Egypt has also been a turning point, but the savior here is the deep waters of the Mediterranean. Italy’s Inni acquired the huge coastal area of Zohar in 2015, and the country that started importing LNG in 2015 as a major exporter has now returned to self-sufficiency.
And in April, the small oil producer announced that it was still awaiting a major review and development in its shallow seawater and deep reservoirs.
Finally, the remaining large, low-cost gas resources and the only country in the region that can develop them are re-launching the LNG development plan. After a brief defeat in Australia, he pursued the United States and became the world’s largest exporter. Today, the capacity to increase from 77 million tons a year to 110 million tons by 2024 could be worth $ 20-25 billion.
These planned investments are huge, especially in times of tight budgets. For these mega projects to be successful, ANCs must significantly increase their technical, business and management capabilities. Some work with international companies; Others are trying to go it alone. Renting grass for the first time requires them to learn new skills in international forums.
Lower basin and industrial investments are far from easy to extract and export crude oil and gas. But governments have to pay big, hidden subsidies, or raise domestic gas prices to cover the high cost of these new areas. That reduces demand and makes it harder to compete with the new industry. At the same time, solar energy and even coal and nuclear power are being received in various Middle Eastern countries, and gas has recently broken the monopoly power plant. This requires the creation of real gas and electricity markets, as in North America and Europe.
Middle East gas needs are understandable, inevitable. Turning to many treasures is, for the most part, inevitable. But if these plans are not commensurate, governments and regional champions must move forward in implementation.
Robin Mills is the General Manager of Quamar Energy and the author of “The Oil Crisis Myth.”
Photo by Haid Mohammad Ali / AFP
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