An industry expert believes Saudi Arabia, who own fourth-largest natural gas reserves in the world, will double its gas price in a bid to share the “healthy margins” enjoyed by gas processors.
Speaking at the Middle East Fertiliser Symposium in Abu Dhabi, Sean Stephenson, the senior consultant of gas-based chemicals at Nexant said: “Saudi Arabia could double the gas price, and it could be timed to coincide with the LPG pricing revision due in 2011.”
“Other Gulf states would likely follow.” he added.
The gas price has been fixed at US$0.75 per million British thermal units (BTU) by Saudi Arabia in an attempt to encourage economic diversification from oil.
Nexant is a provider of software, engineering and consultancy services to the eneergy and petrochemical sectors.
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