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Gas usage ‘will rise’ despite challenges

Gulf Times – Qatar, by Pratap John, Chief Business Reporter, Tuesday 30 June, 2009, 10:16 PM Doha Time

World natural gas consumption will increase by an average 1.6% a year to 150tn cubic feet in 2030 despite demand challenges due to the global economic crisis, the Deputy Premier has said.
HE Abdullah bin Hamad al-Attiyah said natural gas would remain a key energy source for industrial and power generation sectors worldwide. He was speaking at the opening session of 8th Ministerial Meeting of the Gas Exporting Countries Forum (GECF) in Doha yesterday.

“The positive long-term outlook of our industry provides us with confidence to march ahead. And the recent economic crisis, which was unexpected and unpredicted, should provide us with the opportunity to review our strategy and tackle the possible impact of these changes,” al-Attiyah said.

The deputy premier said the last quarter of 2008 was challenging for the energy industry and indications are that 2009 would also be a tough year. The world is trying to recover from what some people are calling the ‘worst global recession’ in decades. The consequences of the economic crisis are not being felt by financial institutions alone. Every other sector including energy has been affected.

“The energy industry has gone through quite a few challenging situations in the past and always come out of these stronger and wiser. This emphasises the need for our industry not to let the current economic crisis block our views and limit our aspirations for a bright future,” al-Attiyah said.
To ensure ‘uninterrupted energy supplies’ to the world, he said the gas industry needed greater mutual support and wise and prudent utilisation of natural resources.

“In this context the role of the forum is essential. I hope the deliberation in the forum and our collective efforts will further prosper our industry. The forum will also enhance dialogue between the gas producers and consumers, which is key to the industry’s success,” al-Attiyah said.

The deputy premier thanked gas producers for choosing Doha the venue of the permanent secretariat for Gas Exporting Countries Forum.

“We are extremely proud that Qatar had received the honour and we assure all GECF members that we will extend our total support to the secretariat,” al-Attiyah said.

The Deputy Premier also outlined Qatar’s dominant role in the global gas industry.

“Today we are playing a major role in energy supply to all markets in Asia, North America and Europe,” al-Attiyah said.

Qatar is set to become the world’s largest LNG exporter by 2010, by which time the country’s mega trains will all become operational. Qatar’s LNG production will exceed 77mn tonnes by the end of the decade, once several large-scale projects being implemented by Qatargas and RasGas have been completed.

Al-Attiyah also said Qatar has not been affected by a fall in gas prices amid a decline in energy demand due to the global economic recession.

“There has been no effect on our deals, gas contracts start with a buyer before production starts. The gas market is still not saturated and able to handle any fluctuations,” he told reporters on the sidelines of the 8th Ministerial Meeting of the Gas Exporting Countries Forum.