19 November 2013 07:02 [Source: ICIS news]
DUBAI (ICIS)--Unconventional gas produced in Gulf Council Cooperation (GCC) countries could be a long-term solution to the regional supply shortage, the Gulf Petrochemicals and Chemicals Association (GPCA) and German consultancy firm Stratley said in a joint report on Tuesday.
Countries such as Kuwait, Saudi Arabia and the United Arab Emirates (UAE) are currently facing a shortage of gas supply, according to the “Shale Game: Impact of the global shale development on the GCC” report.
GPCA and Stratley said in the report that experts frequently state the timeframe in which unconventionals will be broadly produced in GCC countries is from 2020-2030. The GCC region consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
“While local unconventional gas will not be cost-competitive compared to regional unconventional gas in the foreseeable future, it can be cost-competitive compared to imported liquefied natural gas (LNG),” they added.
"If shale resources in GCC countries are wet as experts assume, the incentive to explore and extract NGLs (natural gas liquids) in addition to methane becomes even more attractive," the report stated.
The gas shortage in the GCC region is expected to become more severe in the coming years, the report added. This will likely drive exploration for unconventionals and lead to large-scale commercial projects in the region closer to 2020 rather than 2030.
“Oman even has ambitions to go commercial in the production of unconventionals as early as 2017,” according to the report.
The 8th annual GPCA Forum starts on Tuesday in Dubai and will end on Thursday.
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