The Middle East Energy

With 79m tonnes of liquefied natural gas (LNG) produced per year, Qatar is continuing to secure long- and short-term supply deals in major markets, targeting both developed and emerging economies.

The kingdom’s current economic model is highly integrated with its ability to trade with its neighbours, a model that, thus far, appears to be working well. Despite less than favourable economic headwinds, the World Economic Forum’s (WEF’s) “Global Competiveness Report” for 2012-13, ranked Jordan 64th out of 144 countries surveyed, rising seven places over the previous year.

The early August approval of a $2bn loan by the IMF to Jordan has once again brought the Kingdom’s financial concerns into the spotlight. However, the IMF was quick to point out most of the problems the economy faces come from external factors, and in particular the country’s reliance on foreign sources of energy, which is why much of the IMF’s money will be used to support a number of energy projects well under way.

The utilities sector is turning to private and foreign investors to help spur the growth needed to meet local demand. The construction of 16 power and water projects worth $3.1bn are slated to increase water desalination capacity in the country, as well as improve wastewater treatment and conservation awareness.

Faced with rising energy consumption, Turkey’s government has moved to meet growing demand by sealing a key gas pipeline deal with neighbouring Azerbaijan and stepping up efforts to diversify its power sources away from hydrocarbons imports.

The Abu Dhabi Executive Council recently approved the building of a 10th independent water and power project (IWPP). The increased capacity this new facility will bring is expected to help the emirate meet its rising demand for utilities.