Qatargas CEO Highlights ‘Role of Natural Gas in Future’ Energy Mix at Gastech (The Netherlands)

Qatargas CEO, Khalid Bin Khalifa Al Thani, at Gastech recognises that the share of natural gas, in the future energy mix, is likely to increase, as the fuel is environmentally attractive, abundant and widely distributed.

The Qatargas CEO started his speech by expressing his sincere empathy for those who lost their lives in the tragic situation in Japan and expressing his sadness for the plight of the Japanese people. He stated that Qatar would stand by its foundation buyers and remains committed to its foundation buyers to deliver any required quantities of LNG as directed by HE Dr. Mohammed Saleh Al Sada, Minister of Energy & Industry of the State of Qatar and Chairman, Board of Directors, Qatargas.

In his Gastech Key Note address, “The Role of Gas in the Future Energy Mix”, Amsterdam, he noted that in its most recent World Energy Outlook (November, 2010), the International Energy Agency (IEA) talked about natural gas markets being in the midst of a revolution and asked whether it would herald a new golden era for gas.

He said, “Today, I would like to look a little more closely at the role of gas in the future energy mix. Though, talk of a new golden age may be going a little far, it seems to me that exciting times are ahead for our industry,” adding, “Undoubtedly these are interesting times for Qatargas and the State of Qatar. Just a few months ago, the State of Qatar celebrated the achievement of delivering His Highness the Emir’s vision of the production capacity of 77 million tonnes of LNG per annum, of which Qatargas played an instrumental role. Now with the recent start up of the Qatargas 4 liquefaction project, Qatargas now has confirmed its position as the world’s largest LNG producing company.”

He explained that the world now seems to be emerging from the worst economic crisis in decades, where inevitably, this brings with it growth in primary energy demand. The IEA anticipates that primary energy demand in 2035 would be some 36% higher than it was before the 2008 crisis, where China and India will likely be the key drivers of this increase. He noted that preliminary data suggests that in 2009 China overtook the US to become the world’s largest energy consumer.

Khalid Al Thani noted that technological developments, which Qatargas has been at the forefront, means that natural gas can be economically transported over increasingly long distances. Adding that environmental factors will be key drivers for the Natural Gas business’s continued growth. Natural Gas is cleaner burning than any of the other fossil fuels and is the fuel of choice for power generation in an increasingly carbon-constrained world.

In addition, there are many interesting developments in the field of gas as a transportation fuel – not just ‘gas to liquids’ but also as a liquefied or compressed fuel in its own right. Demand from the marine, rail and road transport sectors could rapidly expand the Natural Gas markets.

These are benefits which will be seen, not only in the developing world where the ease and relatively low cost of gas-fired power generation is important – but also in the developed world. Natural Gas is the only fossil fuel where demand to 2035 is expected to increase in both in the Organisation of Economic Co-operation & Development (OECD) countries but also in the non-OECD countries.

Within this outlook of increasing demand for Natural Gas, LNG as a percent of natural gas supply should grow even faster. Some authorities forecast that LNG production could triple by 2030, creating the need for additional sources of supply.

“In my view, the capital intensive and long-term nature of the LNG business will require that long-term contracts continue to underpin the development of the LNG industry – though a more active spot market is evolving. Equally, financial strength based on guaranteed project revenues from the robust Sales & Purchase Agreements (SPA’s) and our strong shareholder commitments are fundamental elements for the continued evolution of our Qatargas business,” he said.

He concluded, “Qatargas, as a leading player in the Natural Gas industry, will continue its efforts with regard to gas advocacy to further enhance the reputation of the industry.”

[mappress]

Source: Qatargas, March 22, 2011;