Kuwait Petroleum Corporation CEO Sheikh Nawaf Saud Al-Nasser Al-Sabah said on Sunday that the unpredictability of supply and demand is one of the main challenges facing the gas industry, especially in light of the potential economic downturn and rapidly changing geopolitical balances.
Sheikh Al-Sabah added, during the opening of the 28th session of the GCC Gas Manufacturers Association Conference, that despite the growth of the natural gas industry, it faces increasing competition from the global shift towards renewable energy sources, stressing that transformation is another major challenge that “must be taken seriously.”
Other known challenges facing the gas industry still exist, in terms of exploration and development of gas fields and gas transportation and distribution, as well as procedures to ensure the safety and viability of gas infrastructure, which are of paramount importance, he said.
He pointed out that the oil and gas sector has been negatively affected as a result of the fluctuations caused by the coronavirus pandemic, and the accompanying closures and embargo measures, as oil and gas prices reached their historical lows, which prompted oil and gas companies to take fateful decisions and sharply reduce capital and operating expenses, in order to achieve some kind of financial stability. He stated that the world is slowly recovering from the epidemic, as the level of energy demand began to rise gradually, coinciding with the interruption of gas supplies in Europe due to the Ukrainian crisis, noting that the reaction of gas consumers in Europe proved the extent to which the world depends on gas as a clean source of power generation and heating.
Sheikh Al-Sabah said that one of the largest LNG import facilities in the world has been established in Kuwait, with a capacity of 3 billion cubic feet, in addition to building a comprehensive gas and fuel network across the country for domestic consumption.
On the other hand, Acting CEO of Kuwait Oil Company, Khalid Al-Otaibi, said that oil and gas demand has returned to pre-corona levels, pointing out that Kuwait Oil Company intends to increase its production of natural gas, in line with the Petroleum Corporation's strategy, to meet domestic energy demand.
Al-Otaibi added that the increase in production will be mainly through the development of free gas production from Jurassic fields, pointing out that the company signed a contract for offshore drilling and oil and gas exploration in territorial waters, which is one of the most important projects currently being implemented within the framework of the Petroleum Corporation's strategy for 2040.