Gas reinforces the Middle East's role as a key energy supplier

Qatar, Oman, Abu Dhabi and Iran already have projects underway he said, but: "the other Middle East resource holders who will play an increasing role in entering the business in the next few years should not be ignored".

A major challenge for all resource holders, however, might be the shortage of construction capacity that "may well limit the pace of new supply." Industrial construction in the Middle East was booming and there was already a resulting shortage of both skilled labor and manpower.

But, if predictions of the demand for LNG alone were correct, by 2030 the world would have to produce an additional 500 million tonnes per annum and an average of five new LNG trains would have to be built every year for the next 20 years as well as the considerable upstream shipping and downstream infrastructure requirements.

In addition, Mr. Watson pointed out the "long value chains" involved in realizing gas projects, the requirement for significant capital investment and: "investors need to be confident that they will get a return on their money, looking carefully at the economic and political context."

Commented Mr. Watson: "These kinds of factors underline that the success of gas projects depends very closely on the overall climate in which they are being developed. That means supportive and stable regulatory and political frameworks are vital. It means predictable and long-term relationships with government and commercial frameworks supported by long-term contracts are essential. And, of course, the infrastructure and skilled manpower need to be in place to make these projects work."