Oil, gas and petrochemical projects, valued at more than $859 billion, are either underway or planned in the Middle East and North Africa (Mena), a report revealed.
Of these, $283 billion worth of projects are being implemented as the region gets ready to meet the forecast increases in demand for energy over the next two decades.
According to industry forecasts global oil demand will increase by at least 10 million barrels per day by 2040, while natural gas demand is set to grow by 40 per cent and petrochemicals by 60 per cent. The expansion in demand for petroleum and petrochemicals in particular is driving downstream investment across the Mena region, says dmg, organiser of Abu Dhabi International Petroleum Exhibition (Adipec).
What is creating the demand for energy?
Christopher Hudson, president – dmg::events, said: “Breakthrough technologies, the growing global population and rising consumer spending are all combining to create new demand for energy, much of which will continue to be met by the oil and gas industry up to and beyond 2040.
“While producers in the Middle East continue to maximise value from existing fields, there is heightened interest in developing new resources, both offshore and onshore, as well as investing in upgrading and diversifying both infrastructure and products downstream to create new products lines and revenue streams.
“Adipec 2019 will be a catalyst for future growth and prosperity in the oil and gas industry, not only providing companies across the hydrocarbons value chain with a forum to gather first-hand knowledge of the dynamic changes taking place in regional oil and gas investment decisions but also enabling them to make the connections necessary to forge new partnerships and tap into the emerging commercial opportunities those investments are creating,” Hudson added.
Aramco is the largest spender
According to research conducted by Meed, a business intelligence and analytics specialist, Saudi Aramco is the largest single spender in the region’s oil and gas sector, with more than $31 billion worth of contracts under execution. The next three highest spenders are Kuwait’s three largest oil and gas companies with a combined $42.2 billion worth of projects underway.
Meanwhile, Meed says, the Abu Dhabi National Oil Company (Adnoc) has projects with a combined contract value of $16.7 billion under execution across both its onshore and offshore upstream businesses. Outside the GCC, Iraq’s State Company for Oil Project and Algeria’s Sonatrach have $13.7 billion worth of projects in progress.
Leading the way in terms of pre execution contract values is Iraq’s Ministry of Oil with projects worth $19.5 billion in the pipeline, $13.7 billion of which is in the bidding phase, according to a list of top oil and gas projects under execution, compiled by Meed.
Egypt’s Ministry of Petroleum has plans for $12.3 billion worth of projects; the Kuwait Oil Company has a $12.3 billion project pipeline and Algeria’s Sonatrach has announced plans to go ahead with $10.8 billion-worth of projects, including a $2.5 billion contract for the Hassi Messaoud refinery.
India leads projects in Asia
Away from the Mena region, Asia is forecast to see 130 new crude and natural gas projects starting operations over the next eight years, contributing around 518,000 barrels per day and close to 11.5 billion cubic feet per day of gas production.
According to GlobalData, a leading data analytics and consulting company, 76 of the new developments fall under an early-stage category, while 54 of the new projects have progressed to well-defined development plans. India will lead the way with 62 projects, followed by China with 20 and Indonesia with 19. Malaysia will drive natural gas production.
Taking place from November 11 to 14 at the Abu Dhabi National Exhibition Centre (Adnec), Adipec 2019 will once again be a platform for the global oil and gas industry to engage in dialogue, conduct business, and source the creative solutions and strategies that will shape the industry in the years ahead as well as identify the commercial opportunities from the Mena and Asia regions. In common with previous years, Adipec’s conference and technical sessions continue to evolve to reflect the changes taking place in the energy sector.
Why you should attend the conference
Oil & Gas 4.0, the strategic conference at Adipec 2019 will feature conference sessions that will explore the nexus of technology and energy. Other sessions will examine the agile business models and new partnership eco-systems that are at the core of the global energy conversation.
Since its inauguration in 1984, Adipec has continued to grow, gaining worldwide recognition as the premier oil and gas industry exhibition and conference. The exhibition brings together over 2,200 international exhibiting companies across 155,000 gross sq m, with 29 country pavilions, attracting over 145,000 global attendees and 42 national and international oil companies. The conference hosts over 980 strategic and technical speakers across more than 160 sessions, covering the full energy value chain and attracting over 10,400 delegates.
Adipec is held under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, hosted by Adnoc and supported by the UAE Ministry of Energy, the Abu Dhabi Chamber, and the Abu Dhabi Tourism and Culture Authority. - TradeArabia News Service