{"id":1348,"date":"2020-02-23T13:42:58","date_gmt":"2020-02-23T09:42:58","guid":{"rendered":"https:\/\/www.techxmedia.com\/?p=1348"},"modified":"2025-04-18T00:35:14","modified_gmt":"2025-04-17T20:35:14","slug":"middle-east-gas-market-growing-double-rate","status":"publish","type":"post","link":"https:\/\/techxmedia.com\/en\/middle-east-gas-market-growing-double-rate\/","title":{"rendered":"Middle East Gas Market growing at double the rate of demand"},"content":{"rendered":"\n

The\nnatural gas market in the Middle East is experiencing a substantial growth\nphase, with its cost of supply remaining competitive in the long-term despite\nshale revolution. The recent report by Boston Consulting Group<\/a>\u2019s (BCG), Snam,\nand the International Gas Union (IGU) reveals that the Middle East and Asia-Pacific\nhave demonstrated the strongest growth in gas demand the past ten years \u2013\ngrowing at an average of 4.6% per year, double the rate of global primary\nenergy demand.<\/p>\n\n\n\n

The Middle East<\/a> can deliver approximately 8,500 billion cubic meters (bcm) of gas with average breakeven prices of $2.5 per MMBtu [Million British Thermal Units] by 2030. While recent record low gas prices are due in part to oversupply in the global market, low-cost gas reserves are abundant, and the structural cost competitiveness of gas is improving.<\/p>\n\n\n\n

\u201cThe Middle\nEast\u2019s gas market has experienced dramatic growth in the past decade. Our\nresearch shows that access to gas and growth faces limitations in terms of\nlocal market regulations and infrastructure as well as the scale of investment\nin cross-border pipelines,\u201d said Pablo Avogadri, Partner and Associate Director\nat BCG. \u201cThe region could realize enormous benefits through connecting gas\nreserves with end-use markets at a low cost, infrastructure investment, and\npolicy support and adoption.\u201d<\/p>\n\n\n\n

Strong Growth Potential for Gas<\/strong><\/p>\n\n\n\n

The\npotential future for natural gas in the Middle East is strong, but realizing it\nat full will require consistent support and coordinated action by industry,\nnational governments, and the international community.<\/p>\n\n\n\n

Although\nMiddle East gas prices are largely subsidized and pricing structures largely\nregulated, the downward trajectory of gas prices is making gas more competitive\nwith other fuels on a levelized basis. Costs rising above $2.5 per MMBtu\nindicate a requirement for subsidies to keep prices low for end users. <\/p>\n\n\n\n

The\nreport forecasts that the Middle East could maintain its best-in-class position\nto 2030 despite an expected rise in production costs. However, infrastructure\ninvestment will need to grow faster across gas value chains to meet growth\nexpectations.<\/p>\n\n\n\n

Implementing\ngrowth levers for gas will require concerted actions from various stakeholders.\nThese include the development of new business models and technologies from gas\nindustry participants, effective policies from governments, and sustained\ncapital commitments from financial institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Middle East can deliver approximately 8,500 billion cubic meters (bcm) of gas with average breakeven prices of $2.5 per MMBtu [Million British Thermal Units] by 2030. While recent record low gas prices are due in part to oversupply in the global market, low-cost gas reserves are abundant, and the structural cost competitiveness of gas is improving.<\/p>\n","protected":false},"author":8,"featured_media":1350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[9653,9718,9624],"tags":[496,423,432,492,494,495,497,487],"contributor":[],"class_list":["post-1348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy-industry-news","category-government","category-smart-sectors","tag-apac","tag-asiapacific","tag-bcg","tag-energy","tag-energyindustry","tag-igu","tag-me","tag-middle_east"],"featured_image_src":"https:\/\/techxmedia.com\/en\/wp-content\/uploads\/2020\/02\/Pablo-Avogadri-Partner-and-Associate-Director-BCG-e1582528526803.jpg","author_info":{"display_name":"Rabab","author_link":"https:\/\/techxmedia.com\/en\/author\/rabab\/"},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t