The Middle East’s natural gas industry needs a $200 billion investment (Dh734 billion) in the next four years to boost production by 30% and meet the surging demand for power, industry leaders announced in Dubai on Wednesday.
At the Middle East Gas Conference, experts highlighted that data centers, AI, and digital infrastructure in the UAE and the region are key factors driving the increased gas demand.
“Our region is set to become the world’s second-largest natural gas producer after North America. Since 2020, production has increased by over 15%, with a projected rise of 30% by 2030, necessitating a $200 billion investment,” stated Majid Jafar, CEO of Crescent Petroleum and managing director of Dana Gas, during his opening remarks.
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“This is about more than just meeting energy needs; it’s about unlocking economic opportunities, promoting industrial diversification, and enhancing regional cooperation. Gas is crucial for energy security, industrial growth, and the transition to clean energy,” he added.
“Traditional financing won’t suffice for this level of investment. We need fresh partnerships, sovereign wealth investment, and revitalized MDBs (multilateral development banks) to explore new funding avenues.”
Crescent Petroleum has increased its natural gas output by 50%.
“Demand in the UAE and the region is skyrocketing. It has tripled over the past 20 years and will grow by 50% in the next 5 years. Major drivers include the power sector, industrial sector, and the burgeoning AI digital infrastructure,” Jafar told Khaleej Times.
Regional gas production needs to add 14 billion cubic feet per day (bcfd) by 2030, matching Europe’s power sector demand, to reach 86 bcfd.
Delegates also noted that expanding AI infrastructure in the UAE and Saudi Arabia will significantly increase demand as AI’s energy-intensive server farms capitalize on the region’s lower energy costs and modern infrastructure, requiring stable and reliable power from natural gas.
“The region is embracing AI to become a hub for server farms and tech development, which demands reliable baseload power, hence increasing gas demand,” added Crescent Petroleum’s CEO.
Musabbeh Al-Kaabi, CEO of Adnoc Upstream, and Abdulkarim Al-Ghamdi, EVP for gas at Saudi Aramco, also participated in special keynote sessions.
Delegates stressed strengthening partnerships among producers, investors, and stakeholders, promoting new investment models, and advancing regulatory frameworks to develop resilient gas networks regionally.
