USD 200 Billion Investment Needed For Growth Of Region’s Gas Sector, Industry Leaders Say

The Middle East's natural gas sector is poised for significant growth, requiring $200 billion in investment over the next four years to boost production by 30%. This expansion aims to meet the increasing demand for electricity. Industry leaders discussed these plans at the Middle East Gas Conference in Dubai, where over 150 executives from major energy companies gathered.

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, highlighted the region's trajectory towards becoming the world's second-largest natural gas producer. "Our region is on track to become the world’s second-largest producer of natural gas, behind North America. Since 2020, gas production has grown over 15%, and is expected to rise another 30% by 2030, which will require US$200 billion of investment," he stated.

The conference was organised by Petroleum Economist with Crescent Petroleum as host sponsor. It featured key figures from ADNOC, Aramco, XRG, Bapco Energy, RAK Gas, Dana Gas, SNOC, Shell and others. Financial institutions like Deutsche Bank and Cantor Fitzgerald also participated, focusing on financing natural gas projects.

Abdulkarim Al-Ghamdi from Saudi Aramco emphasised the importance of collaboration: "Today’s discussions underline how critical gas and related infrastructure are for meeting rising power demand... Delivering on that potential depends on closer cooperation between governments, investors, and industry."

The event underscored the need for partnerships among producers and investors to build resilient gas networks. Musabbeh Al-Kaabi from ADNOC Upstream delivered a keynote address at the Waldorf Astoria DIFC venue. The focus was on creating new economic opportunities through industrial diversification.

Jassim Alshirawi of the International Energy Forum noted: "As the global energy landscape rapidly evolves... This places natural gas at the center of the global energy strategy." He highlighted Aramco's ambitious plans to increase sales gas production capacity by 80% by 2030.

Meeting Future Energy Demands

The conference addressed how AI infrastructure development in countries like UAE and Saudi Arabia will drive additional energy needs. AI's power-hungry server farms benefit from the region's lower energy costs and modern infrastructure. Natural gas provides stable baseload power necessary for these operations.

Paul Hickin from Petroleum Economist remarked on the significance of this gathering: "This event brought the industry together to unlock the full potential of Middle East gas for its people..." The discussions aimed at supporting secure and sustainable regional growth.

The conference concluded with a call for innovative investment models and regulatory frameworks to enhance regional gas capacity. By adding 14 billion cubic feet per day (bcfd) by 2030, equivalent to Europe's power sector demand, regional production could reach 86 bcfd.

With inputs from WAM