The gap between the rising price of crude and the declining price of natural gas has widened, although the gas-producing countries in the Gulf believe that the demand for natural gas will increase by 60% by2030 and this gap will narrow.
The total reserves of natural gas are estimated at 180 trillion cubic meters, exceeding projected demands through 2030 by a wide margin. Moreover, new discoveries are made regularly. Thus, the estimated current reserves are twice the size of those established in 1980.
One half of the reserves are located in Russia, Iran and Qatar.
Natural gas contributes 23% to the total consumption of energy.[Due to international sanctions and the absence of foreign investments in its energy sector, Iran is a net gas-importer than gas-exporter. Qatar leads in the export of liquefied natural gas.]
In anticipation of higher prices and greater demand, the Gulf counties plan to invest $100 billion in natural gas projects in the next decade. It is projected that by 2020 that natural gas will provide 60% of the energy required for power generation and water desalination in the Gulf countries compared with 46% currently.
Source: Menafn.com, March 7, 2010
