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Shale gas growth may hit regional LNG market

Steel News - Published on Thu, 09 Dec 2010

Investment in the development of shale gas, a natural gas recovered through a careful procedure involving horizontal drilling and hydraulic fracturing in the US and Europe could hit Middle East gas markets.

Mr Colin Chapman president of Euro Petroleum Consultants said that “Over the last several years, technologies for extracting unconventional natural gas from shale formations have been implemented with greater precisions resulting in lower costs. So much so that costs for these types of gas projects have been in some cases lower than those of more conventional projects.”

Offering fresh insights into the future of global gas market, Mr Chapman said that in Europe, shale and other unconventional gas resources have been identified in France, Germany, Hungary, Italy, Netherlands, Poland, Romania, Spain, Sweden, Switzerland and the United Kingdom. As a result, LNG rich nations such as Qatar and UAE have already begun re evaluating options of exporting gas to some of its gas strapped neighboring countries.

Mr Chapman was speaking ahead of EPC’s \'ME TECH 2011 Conference & Exhibition to be held from January 24 to 26 at the Madinat Jumeirah in Dubai. The conference aims to discuss latest technology developments in the downstream industry including gas processing, oil refining, residue upgrading and petrochemicals.

He said that several high profile industry representatives such as Mr Ibrahim Al Ansari GM of Dolphin Energy and Dr Abdulwahab Al Sadoun secretary general of Gulf Petrochemicals and Chemicals Association will be there to discuss global and regional trends.

Mr Chapman said that looking at the regional LNG market, the fact we are currently in the middle of a global economic downturn coupled with the emergence of the unconventional gas supply and new LNG capacity coming on-stream, it is likely that there will be a reduction in project activity in the LNG sector over the coming year.

North America has been the leader in developing and producing shale gas and the great economic success of the Barnett Shale field in Texas has spurred the search for other sources of shale gas across both the US and Canada. Within the Middle East region, shale reserves exist in Jordan and Syria, but the extent to which the deposits will have on the overall gas balance will largely depend on the speed at which exploration efforts advance.

(Sourced from Trade Arabia)

Posted By : admin on Thu, 09 Dec 2010
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