Gas is going to play an increasingly important role in the future energy mix and Sharjah-based Dana Gas is well placed to take advantage of gas’ growing role.
Patrick Allman-Ward, CEO of Dana Gas explained: “We believe that there is a great future for gas in the region and we are well positioned as a company both operationally and geographically to take advantage of that growth in demand both for power generation as well as for petrochemical feedstock. One of the lessons of the last three years is that you should never take anything for granted, least of all continued high oil prices. We have addressed the challenge of operating profitably at significantly lower oil prices through a relentless focus on cost reductions and efficiency gains whilst always maintaining our commitment to the highest levels of asset integrity and HSSE standards.”
The role of LNG in the region
The Middle East region is seeing a big increase in gas demand but hurdles remain. Allman-Ward noted: “The Middle East region has vast gas reserves. However, the development of domestic non-associated gas resources across the region requires the liberalisation of gas prices and the removal of energy subsidies. Inter-country gas flows in Middle East are constrained by political barriers; limited inter-country gas infrastructure and distorted gas pricing. So to meet growing gas demand the Middle East is experiencing the strongest growth in LNG demand in the world (on a relative basis).”
He feels that the emergence of new LNG markets has been enabled by floating regas terminals, increased LNG trading and shorter contract terms. These evolving LNG market dynamics have enabled the emergence of new markets in the MENA region like Egypt, Jordan and Pakistan.
“The trading led liquidity in LNG markets is likely to help in homogenising gas prices across key markets (N. America, Europe, Asia and the ME). This, together with the surge in LNG capacity construction that is due on-stream over the next four years is likely to maintain the existing glut in LNG and keep gas prices affordable. This is well timed as it will allow gas to compete and displace coal and oil in power markets enabling the reduction of GHG emissions and help achieve the Middle East’s COP21 pledges,” said Allman-Ward.
Read the full article at pipeline.com to know more about growth opportunities for the gas sector in the region.
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