Significant new investment will be required in all links of the global gas value chain as demand rises around the world and new, remote sources compete for customers. Until that market matures, liquefied natural gas (LNG) will bridge the gap. So says a new study by Wood Mackenzie of Edinburgh, Scotland. Completed for the National Iranian Oil Co., the study will help NIOC and other members of the Gas Exporting Countries Forum, a new group formed to identify growth areas and opportunities in the increasingly global gas market. The study concludes that world gas demand will double during the next 30 years, helped by the spread of gas-fired power-generation capacity in all regions. Growth is expected in traditional areas such as North America and Europe, as well as more rapid expansion in Asia, Africa and the Middle East. Increasingly, that gas will have to be supplied from remote sources. Government liberalization policies and new technologies such as gas-to-liquids (GTL) are helping to make that a reality. There will be strong competition for customers among all the new gas players-the majors especially are now focusing more on gas projects. However, WoodMac cautions, it is unlikely that all the proposed gas-development projects will obtain sales contracts, and a potential oversupply of gas may exist in the short-term. Some projects may be deferred; others may be canceled. -Leslie Haines
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