Renewables no threat to gas market

The burgeoning global transition to renewable resources poses no major threat to the importance of natural gas, and its variant LNG, as a vital energy source , according to the Salim bin Nasser al Aufi (pictured), Under-Secretary of the Ministry of Oil & Gas.
Speaking at the annual meeting of the Gas Processors Association (GCC and European chapters), under way in the city, Al Aufi instead challenged gas industry executives to squeeze out “inefficiencies” across the hydrocarbon value stream and thereby make the commodity more competitive in the face of market inroads made by other energy resources.
“If we do not make the entire value change as efficient as possible, from gas exploration to processing, transportation, liquefaction, and ultimately, shipping (of LNG) to the end-user, then we potentially leave the door open for (competing resources) to enter this market,” the official stated.
The comments came during a panel discussion on the theme, ‘The Gas Market — A Look Forward’, moderated by Dr Syham Bentouati of NAFAS International LLC. Also taking part in the discussions were Harib al Kitani, CEO — Oman LNG; Sabeur Mansar, VP — Commercial & New Business Development, Shell International; and Steve O’Donnell, Chairman of the Gas Processors Association (Europe).
Oman, for its part, is an enthusiast proponent of renewables, said the Under-Secretary. “Renewables are happening right now and this is extremely welcome. There is an indication from the government that renewables will be part of the energy mix. At the moment, we are advocating about 10 per cent, which I think is a bit low. It needs to be higher. So welcome renewables into the market.”
Al Aufi went on to list a number of initiatives being pursued by the government and other public and private sector agencies in support of renewables-based energy development. Notable examples are the utility-scale 500 MW solar PV project planned in Ibri, and Petroleum Development Oman’s (PDO) 100 MW pilot due to come up at Amal in its Block 6 concession, he noted.