Middle East to provide a third of Asia's gas supplies by 2010

Asia's expanding economies could turn to the Middle East for as much as third of their gas supplies by 2010, according to Asian delegates at an international gas conference held in Dubai this week.

"By 2010, it is possible that Asia could be importing up to one third of its requirements from the Middle East," said R.P. Sharma, executive director of the Gas Authority of India Ltd. (GAIL) at the "Third Middle East Gas Summit" held during October 18-23.

According to GAIL statistics, Asia is the world's biggest market for gas, accounting for 78 percent of liquefied natural gas (LNG) trade, with total imports of 59.4 million tons. Only two Middle Eastern countries are currently LNG producers, Qatar and the United Arab Emirates (UAE), with an output of nearly 4.4 million tons a year each, sold mainly in Japan, the world's top importer of LNG.

Qatar accounts for only 14 percent of Asia's imports of LNG, although the Middle East's reserves of more than 48,000 billion cubic meters make up 30 percent of the world's total.

"Enormous gas reserves and low-cost gas production will undoubtedly turn the Middle East into a large exporting region," said Sharma.

Another reason is the sharp rise in demand, as China and India--the world's most populous nations--and Pakistan consider joining Japan, south Korea and Taiwan in the Asian gas importers league.

By 2010, total Asian gas demand would nearly double to 104 million tons a year, according to the consultant Arthur D. Lihle.

Three Asian sates, currently receive their gas mainly from within the region: Indonesia, Malaysia and Brunei. But demand is expected to outpace regional supply.