Gulf states must focus on small gas marts

Apr 05, 2002 02:00 AM

Gulf countries must focus on providing gas to small and medium scale industries, offices and residences, thus enlarging the scope of its use, an industry expert said. "There is still excessive government interference with respect to gas trade and utilisation. Governments should be more imaginative in taking steps to promote and encourage gas utilisation than in imposing limitations."
"Licensing of local networks is an important step in this direction," said Dr. Giacomo Luciani, adviser and independent consultant in Italy and former assistant director-general of ENI Group, the state-owned oil and gas company.

The scope of gas use in the Gulf remains limited as it is exported either as LNG or as methanol/ MTBE or as some other petroleum product, mainly due to rapidly improving GTL (gas to liquids) technology.
"However, there is no drive to make gas available to small and medium manufacturing industries, nor to the office and residential markets," Luciani told the Gulf Gas conference in thecapital recently.

Citing the European example, Luciani said gas use and availability had been expanding year after year on the back of demand from civilian and industrial users.
"Industrial and civilian uses are typically small and medium scale, and there's a vast distribution network serving homes, small and medium industrial and commercial users." Gulf states should move to attract private investment in the creation of local distribution network by auctioning licences.

Source: Gulf News Online
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