Energy leaders stress the need for $200 billion to boost growth of the gas sector in the region

Energy sector officials stressed that the regional natural gas industry needs investments amounting to $200 billion in the next four years, to increase production by 30% and meet the growing demand for energy, as part of their participation in the Middle East Gas Conference on Wednesday in Dubai.

This pioneering conference brought together more than 150 executives from the most important gas producing companies in the region, to discuss the next stage of developing the vast natural gas resources in the Middle East and North Africa, and to call for strengthening capabilities to keep pace with the huge rise in demand for electricity, and accelerating the replacement of oil with gas in energy production.

The Middle East Gas Conference, in its first session in Dubai, hosted senior decision makers and executives from national and international oil companies, financiers and infrastructure specialists, to study the reality of the rapidly growing gas industry, and prepare to face the challenges accompanying rising population growth in the region, and the sharp increase in demand for electricity for reasons of air conditioning, water desalination, and the operation of artificial intelligence, as well as to enable the region to diversify its economies. The conference was organized by the Petroleum Economist magazine in partnership with host sponsor Crescent Petroleum, the oldest and largest private oil and gas company in the region, and witnessed prominent participation from executives from ADNOC, Aramco, XRG, Bapco Energy, Ras Al Khaimah Gas, Dana Gas, Sharjah National Oil Company, Shell, and others. A number of leading financial institutions also attended the conference to shed light on gas financing courses, including Deutsche Bank, Cantor Fitzgerald, and First Abu Dhabi Bank.

“Our region is on track to become the second largest natural gas producer in the world after North America,” said Crescent Petroleum CEO and Managing Director of Dana Gas, Majeed Hamid Jaafar, in the conference’s opening remarks. “Since 2020, gas production has grown by more than 15%, and is expected to rise by an additional 30% by 2030, which will require investments worth US$200 billion.”

He added: “The importance of this growth is not limited to meeting energy needs, but also because it creates new economic opportunities, supports industrial diversification efforts, and strengthens vital regional ties. The gas resource will be an essential element in ensuring energy security, supporting industrial development, and achieving the goals of transitioning to clean energy markets.”

The discussions highlighted that regional gas production efforts will need to add 14 billion cubic feet per day of supply by 2030, equivalent to the level of demand in the European energy sector, bringing production to 86 billion cubic feet per day.

The participants also pointed out that plans to develop artificial intelligence infrastructure in the region, including the UAE and Saudi Arabia, will attract new momentum with levels of energy demand, because artificial intelligence server centers, which consume high energy, will move towards these markets to benefit from their relatively low cost of energy and their modern infrastructure, and will need reliable and uninterrupted energy supplies, fueled by natural gas. Therefore, the region’s affordable energy, robust and flexible policies, and available capital are all exceptional global features and an ideal environment for developing AI infrastructure.

The conference, which was held at the Waldorf Astoria Hotel in the Dubai International Financial Centre, witnessed keynote speeches from leading figures including Musabah Al Kaabi, CEO of ADNOC’s Exploration and Production Division, and Abdul Karim Al Ghamdi, Executive Vice President of the Gas Business Sector at Saudi Aramco.

The attendees focused on the need to build stronger partnerships between producers, investors and others, and encourage the adoption of new investment models and regulatory frameworks conducive to the establishment of integrated and flexible gas networks throughout the region.

Executive Vice President of Gas Business, Saudi Aramco, Abdul Karim Al-Ghamdi, commented: “The world is witnessing rapid changes in the energy sector, but the need for reliable, low-cost, low-emission energy remains constant. Here, natural gas emerges as a key pillar of the global energy strategy. At Aramco, we are implementing one of the largest gas production expansion programs in our history to increase sales gas production capacity by 80% by 2030 compared to 2021, reaching about 6 million barrels of equivalent. “This expansion is expected to generate additional operating cash flows ranging between $12 and $15 billion. Thanks to lower production costs, reduced carbon and methane intensity, and reliance on advanced technologies, with our competencies and strategic partnerships, we continue to build a more efficient energy system that serves everyone.”

For his part, Secretary-General of the International Energy Forum, Jassim Al-Shirawi, added: “Today’s discussions confirm the importance of gas and its related infrastructure in meeting the growing demand for electricity, supporting industrial development, and accelerating the trend towards sustainable future energy. Achieving these goals depends on strengthening cooperation between governments, investors and industry, which the Industry Advisory Council of the International Energy Forum contributes to achieving, by involving leading energy companies in strategic discussions and providing basic practical insights, which ensures enhanced cooperation and communication between policy makers and financiers. sector, and ultimately achieve sustainable energy security around the world.”

Paul Hicken, editor-in-chief and chief economist at Petroleum Economist, said: “This event brought together industry leaders to realize the full potential of the Middle East’s gas resources, for the sustainable benefit of its people and supports sustainable and safe development across the region.”