BAKU, Azerbaijan, May 8. The Middle East is expected to invest as much as $120 billion to increase gas production by 14 billion standard cubic feet a day (bcfd) to 86 bcfd by 2030, the latest report by Wood Mackenzie, 'The Middle East steps on the gas', said, Trend reports.
"The expected uptick in production is equivalent to the gas consumption of the entire European power sector and could help energy companies solve the energy trilemma of sustainability, security and affordability," the report said.
As such, around half of these 14 bcfd will be available for exports.
"The Middle East can be part of the solution for the global gas markets as the region continues to ramp up production from its gigantic gas reserves. To fulfil the level of production growth that we have predicted, investments in non-associated gas projects are set to reach a record $25 billion this year and a cumulative total of $120 billion by the end of the decade," said Alexandre Araman, Principal Analyst for Middle East Upstream at Wood Mackenzie.
At the same time, according to the report, Qatar's LNG exports should reach 126 million metric tons per annum (mmtpa) by 2030-end, while Abu Dhabi should be able to export 15.4 mmtpa after Fujairah LNG comes on stream in 2028.
WoodMac report also noted that immense opportunities will emerge for international companies in the region.
"Gas accounts for barely 35 percent of their Middle East production mix but generates more than 70 percent of the value. Fifty per cent of the value figure is created in the global LNG powerhouse of Qatar by three companies: ExxonMobil, Shell and TotalEnergies," the report added.