GPCA '11: Gas prices closer to international levels will raise supply

15 December 2011 08:21  [Source: ICIS news]

DUBAI (ICIS)--Petrochemical producers in the Gulf Cooperation Council (GCC) region will have more access to natural gas resources if gas pricing in the region was more in line with international levels, a senior executive of RasGas Company said on Thursday.

Natural gas supply has been tight in the GCC region because of rapid demand growth in the petrochemical and power sectors, said Hamad Rashid Al-Mohannadi, managing director of RasGas.

He was speaking at the sidelines of the sixth annual GPCA (Gulf Petrochemicals & Chemicals Association) conference which is being held in Dubai this week.

Petrochemical sectors in the GCC pay around $1-3/MMBTU (€0.77-2.31/MMBTU) for natural gas, whereas producers in other gas-producing regions pay an average of $15-17/MMBTU, he said.

Petrochemical producers who want to obtain natural gas at a discount from international levels should show their social economic contributions, he added.

($1 = €0.77)

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By: Chow Bee Lin
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