Arab region’s gas demand growth overtakes oil

Gas demand in the Arab region has grown faster than oil demand in the past 10 years to peak at 3.34 million barrels of oil equivalent per day in 2005, according to a study by the 10-nation Organisation of Arab Petroleum Exporting Countries (Oapec).

The demand is projected to rise to 4.08 million boed in 2010 and to 5.1 million in 2015 before it climbs to a record 6.4 million, an annual growth of 4.4 per cent between 2005 and 2020, the Kuwait-based Oapec said.

The growth is expected to expand the share of gas in the Arab energy market to 41.5 per cent in 2005 to 46.2 per cent in 2020.

The expansion will be at the expense of oil products demand, whose share will slide to around 51 per cent from 55.8 per cent in the same period, the study said.

“This increase will be a natural result of economic growth and plans by regional states to rely more on gas in their energy consumption mainly in industries, domestic use and power generation.”

Gulf News