Qatargas is participating in the Gastech 2015 Conference being held from 27-30 October 2015 at the Singapore EXPO. The delegation attending the conference comprises representatives from various disciplines across the organization. Qatargas is also participating in the exhibition that runs in parallel with the conference, as part of the Qatar Petroleum pavilion.
Alaa Abujbara, Qatargas Chief Operating Officer – Commercial and Shipping, presented a paper at the conference, titled “Changing Global Gas Dynamics.” Mr. Abujbara’s paper focused on the recent changes affecting the global gas and LNG markets, and the changes expected to be seen over the medium- to long-term.
In the paper, Mr. Abujbara explained that the global energy sector is going through a fundamental re-balancing process, characterized by new market dynamics and price volatility. However, the longer term fundamentals for natural gas and LNG look bright. “We believe that economic growth, urbanization, environmental policies and the application of new technologies – all support the long term future of our industry,” Mr. Abujbara said.
Mr. Abujbara added that in the LNG sector, the global market has been adjusting this year to a number of factors including the lower oil price, lack of short-term demand from the traditional Far East markets, new markets appearing in the Middle East, and ample supply from existing and new producers, all of which have led to an uneven market where each region is attempting to balance local supply and demand.
“Our view is that over the next five years, global gas demand will grow about two per cent per year, which is slightly lower than previous forecasts. The slower growth is attributed to lower electricity demand growth in Asia, and lower oil prices leading to less infrastructure development in the Middle East. However, we believe that a strong political will for ‘clean air policies’ is expected to spur gas demand,” Mr. Abujbara said.
Global LNG trade, he added, currently stands at around 250 million tons per annum (mtpa), but it is expected to reach over 400 mtpa by 2025. Despite there being over 100 million tons of liquefaction capacity under construction around the world, there are questions whether there will be sufficient supply to satisfy demand after 2020.
Summing up his views, Mr. Abujbara said that the LNG industry is capable of developing the supply base required to meet future demand. With the right set of fundamentals in place, the industry will fulfil its promise of delivering available, affordable and acceptable LNG. “We must remain vigilant in advocating for the future of our industry,” he concluded.
Gastech is a key event for the international oil & gas industry and a global meeting place for energy professionals working in the natural gas cycle. The event is held every 18 months at a different international location. As an industry leader, Qatargas views its participation in such global industry events as an opportunity to discuss issues impacting our business today and in the future and share our experience and knowledge with industry peers. The event also offers delegates face-to-face networking opportunities at the highest level.
Gastech’s acclaimed international conference features more than 120 of the industry’s most prominent speakers and representatives from the global gas supply chain to engage over key issues impacting the upstream, midstream and downstream sectors.