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Managing gas portfolios on commercial basis vital

Gulf Cooperation Council (GCC) governments could generate US$10 billion yearly in additional GDP and foreign earnings, or support the creation of 100,000 jobs, by applying commercial principles to the management of their gas portfolios, according to a recent report conducted by Strategy&, part of the PwC network.

GCC countries have long benefited from an abundance of cheap gas that exceeded their needs. However, demand for this finite resource is growing, meaning GCC countries must start making hard decisions about how best to use it.

The report also finds that a modest increase in the gas price of just US$0.5 per million British thermal units (mmBtu) would add more than $6 billion per year to GCC government coffers.

David Branson, executive advisor with Strategy& Middle East, said: “The days of abundant cheap gas in the GCC are over.GCC governments now need to take a more strategic approach to managing the gas sector so that they use their gas resources more efficiently. The way forward is for GCC governments to apply commercial principles to the management of their gas portfolios to drive GDP growth and create employment.”

Source Link: timesofoman.com

  • Gulf Cooperation Council
  • Foreign Earnings
  • PwC Network
  • Gas Production
  • GDP
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