'Paradox' as Mideast faces power shortage

Oil and gas-rich countries of the Middle East are facing a worrying paradox - how to meet rapidly expanding power demand to feed their fast growing economies, the International Energy Agency said on Tuesday.

"Shortages of natural gas - hitherto the fuel of choice for electricity generation - have become a regular feature, forcing governments to consider alternatives such as coal, fuel oil, nuclear and even imported gas," the IEA wrote.

Abu Dhabi is expected to divert gas from its oilfield injection programme this summer in order to run power stations and desalination plants, the IEA said in its monthly report.

A large gas-fired power station serving the United Arab Emirates will be obliged to run two of its trains on gas oil, requiring some 50 tanker trucks a day, it added.

"But gas oil itself is scarce," the IEA said. "In Qatar, trucks must reportedly wait up to six hours to refuel."

Kuwait has warned there will be power cuts this summer.

For most countries local gas is not a short-term option because projects take a long time to develop.

Qatar, with the world's third biggest gas reserves, is considering using coal. Saudi Arabia, the world's leading oil exporter, and Oman are considering building coal-fired plants, according to the IEA.

The agency said liquefied natural gas (LNG) was another possibility for energy hungry Middle East economies. Kuwait for example is reportedly considering building a terminal with Royal Dutch Shell and BG, the IEA said.

"Other countries are envisaging power imports, with Bahrain willing to purchase electricity from Saudi Arabia," it added.

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READERS' COMMENTS

water & power
Posted by langyaw, Dubai, UAE on Wednesday 13 June 2007 at 15:27 UAE time

Not just power will become scarce but water as well. These are the 2 most important commodities ME planners ought to be focusing their energies on starting today. Failure to meet either will just result the growth to implode, beginning either with investors or workers, neither of which ME can afford to lose.

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