Expansion programs across the GCC are expected to increase the region's district cooling capacity by threefold to 5.5 million tons of refrigeration (TR) by 2011-2012, while an additional 6.5 TR is expected to be ready by 2015, industry stakeholders said at the three-day 4th International District Cooling Conference and Trade Show held at the InterContinental Dubai Festival City which ended on Tuesday. Saudi Arabia was a major focus of the conference as the Kingdom offers strong long-term market potential. Recent studies have shown that Saudi Arabia is expected to account for around half of the GCC's operating capacity by 2015. District cooling has emerged as a critical tool in optimizing energy use in the GCC with studies showing that up to 11 billion cubic meters of gas supplies can be saved annually if half of the region's air conditioning needs are addressed through district cooling solutions. “Power consumption in the GCC has been increasing steadily over the years and is predicted to sustain a 7.7 percent compound annual growth rate (CAGR) from 2007 to 2015. We can expect this figure to further increase in view of the ongoing developments taking place across the region. It is therefore imperative that we adopt innovative solutions to bring down power consumption to more sustainable levels,” Shafiq Khoori, managing director, Palm District Cooling, said in a panel discussion on “An Open Conversation about Reliability, Profitability and Maximizing Returns in the District Cooling Industry.” “District cooling will play an important role in our collective efforts to optimize energy efficiency across all countries in the GCC,” he added. With gas reserves estimated in 2008 to reach 25.7 trillion cubic meters (TcM), Qatar has the third largest gas reserves in the world behind Russia (44.6 TcM) and Iran (28.5 TcM). Collectively, the Middle East has the world's biggest gas reserves with 73.21 TcM followed by Europe, making the Arab World a crucial link in the global gas trade. Furthermore, several large-scale projects are now underway to boost capacity of existing gas fields in Qatar, the UAE and Saudi Arabia. These countries are expected to collectively account for up to 81 percent of the total gas supply in the GCC. Current forecasts project demand for gas in the GCC to grow at 6.66 percent annually from 2007 to 2012, while oil demand is expected to grow at nearly three percent during the same period. Furthermore, with over $196 billion worth of oil and gas projects being undertaken all over the GCC, the oil and gas segment has been appropriately retooled to serve as a strategic link between the upstream and downstream value chains and help open new opportunities for business and networking initiatives. GCC demand for gas is growing faster than the region's demand for oil, with projections that it could increase to the oil equivalent of more than 4 million bpd by 2010 and to 5.1 million bpd in 2015 and 6.4 million bpd to 2020. According to OPEC, the growth is expected to expand the proportion of gas in the Arab energy market to more than 46 percent by 2020. – By Querubin J. Mi?as Palm District Cooling is ready to offer its insights and expertise to assist private and public institutions in capitalising on the strategic and long-term benefits of district cooling solutions. The International District Cooling Conference provided a tremendous boost to our efforts to expand our presence in the GCC market and build strategic partnerships,” he added. During the conference, Palm District Cooling presented its portfolio of high-profile projects in the UAE, including the Gardens Residential Complex, Jumeirah Islands, Discovery Gardens, Jumeirah Lake Towers and Palm Jumeirah. Dubai, in particular, has become a major market for the district cooling industry in view of the emirate's green building policy. Palm Utilities, through its subsidiaries Palm District Cooling (PDC) and Palm Water (PW), has been established to address the region's unique requirements in the distinctly critical areas of district cooling and water services. On top of its expansion activities within the UAE, Palm Utilities has also revealed plans to pursue new core business activities within other utilities, including sustainable energy and environmental waste management. The company also plans to expand its operations overseas and has initiated talks for new business prospects with potential partners in the Middle East, India and the rest of Asia.
