Oil, gas and petrochemical projects valued at more than $859 billion are either underway or planned in the Middle East and North Africa, according to a new report.
Of these, $283 billion 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 percent and petrochemicals by 60 percent.
According to research conducted by MEED, 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 while the Abu Dhabi National Oil Company has projects with a combined contract value of $16.7 billion under execution across both its onshore and offshore upstream businesses.
The expansion in demand for petroleum and petrochemicals in particular is driving downstream investment across the MENA region, said dmg, the organisers of the Abu Dhabi International Petroleum Exhibition (ADIPEC).
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 maximize 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.
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.
Taking place on November 11-14, ADIPEC 2019 brings together over 2,200 international exhibiting companies across 155,000 gross square metres, with 29 country pavilions, attracting over 145,000 global attendees.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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