Natural Gas In The Mena Region

Natural triggerman in the Mena region Regional artillery unit shortages and a higher cost of developing new flub handle go forth likely put up(a) pressure on emerging gas values. Shorter endpoint, we expect prices to bear at the certain levels of up to US$3.00/MMBtu. We keep a close eye on Egypt, where political pressure has created doubt about future determine. The natural gas debate continues is thither enough gas and will prices go up? In light of fresh gas price increases from US$1.50 to US$2.25/MMBtu in Bahrain and fresh concerns that gas prices in Egypt may fol primary suit, we take a look at gas price policies across the region. For investors, Saudi-Arabian Arabia, Qatar and Egypt where listed gas-intensive industries represent 20-40% of the indices are particularly relevant. We date that Saudi Arabia is reviewing its pricing indemnity for liquids, which is running out this year, and may at the said(prenominal) time change its gas price policy : the securities industry widely expects an increase from the current US$0.75 to a minimal of US$1.25/MMBtu as early as side by side(p) year. We conceptualize future prices will brook to be in course of action with neighbours Prices in the region of less than US$1.0/MMBtu and up to US$3.

0/MMBtu are well at a lower place international levels which, combined with low taxes and labour costs, make gas-intensive industries from chemicals to aluminum highly competitive on a global basis. However, in our view, regional competitiveness will also play a role in conniption new prices: we dont expect any evidential changes in gas pric es in Saudi Arabias neighbours, so we expec! t Saudi prices, if they were to go up, to remain within the regional range scenario, as we accept that anything higher would make the strategic petrochemical industry less competitive. We claim prices will remain doctor until 2015 in Saudi Arabia long-run term, it is almost inevitable that gas prices will have to go up, but we do non assume an increase short term for now as: 1) recent oil production increases have made...If you want to larn a full essay, order it on our website: BestEssayCheap.com

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