Arab energy sector needs US $345 billion

Arab countries will need US $345 billion worth of investment in their energy sectors over the next four years, as they develop their infrastructure to meet local and international demand, according to an Arab Petroleum Investments Corporation (ApiCorp) report.

The figure is 57% higher than previous forecasts for 2006-2010, which estimated requirements at US $220 billion. ApiCorp said in its latest commentary report that of the expected US $345 billion energy investments needed in the Arab world, gas projects make up 45%, followed by oil projects at 41% and oil-or-gas-fuelled power generation projects at 14%.

The Saudi-based joint stock company also said: "The factors most responsible for the current upsurge are notable changes in scope and/or scale of key projects and soaring project costs across the board." They explained that in the past, rising capital investment was linked to a boost in project numbers but that this time the number of projects has "levelled off".

Nearly half the energy investments are concentrated in Saudi Arabia, Qatar and Algeria, reflecting the oil distribution in the region. And according to ApiCorp, the countries most responsible for the current upsurge are Kuwait, Egypt, Qatar and Libya. Their combined capital investment needs have climbed by over 80%.

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