ABU DHABI — Natural gas is expected to play a major role in meeting the energy demands from Middle East and North African consumers, the Abu Dhabi National Oil Co. (Adnoc) has reported. The Abu Dhabi company said on Thursday it was laying the foundation for an international petroleum conference in November. Adnoc said the focus of the conference would be the general shift toward natural gas in the region. The official Emirates News Agency has reported that companies in the Middle East and North Africa account for 42 percent of the global natural gas reserves. It said it expects demand for natural gas to increase as regional economies look for cleaner alternatives to coal and oil. Adnoc director of natural gas operations Mohamed Sahoo Al-Suwaidi said natural gas offers a cheaper and cleaner option for the region's energy demands. “We believe it is the right time to address the needs of the burgeoning gas sector given the need to diversify our energy mix and cater to domestic demand,” he was quoted by the United Press International as saying on Wednesday. Adnoc said it was investing more than half of its $40 billion budget for 2013 on natural gas. The international conference is scheduled over three days beginning November 10. Natural gas plays a pivotal role in the economic development of the United Arab Emirates. Natural gas represents more than 99 percent of the fuel mix used to generate electricity. On the other hand, electric power production accounts for almost 60 percent of the country's total gas consumption; the rest is used in industry. One report said Abu Dhabi has come to be very reliant on natural gas, which is abundant in the country. With 198.5 trillion cubic feet, the emirate has the fifth-largest gas reserves in the world after Russia, Iran, Qatar and Saudi Arabia, according to the US Energy Information Administration. However, despite its huge reserves, the natural gas in Abu Dhabi faces challenges in accessing and processing as well as in balancing supply and demand, reports said. Much of the emirate's natural gas is rich in sulphur and expensive to process. Moreover, an increasing volume of Abu Dhabi's gas is being re-injected into the emirate's oil fields, in order to increase their productivity. In order to meet high demand for gas, Abu Dhabi has devised a strategy. Importing gas from abroad is a major part of this strategy. The other part involves the creation of an “energy mix”, which includes nuclear and other alternative energy sources, the report said. — Agencies
