Energy

Thanks in large part to the number of hydrocarbons expansion projects that have taken place over the past few years, Qatar is expected to see sustained economic growth for the foreseeable future. According to an economic bulletin released by Saudi Arabia’s Samba Financial Group in late March, the country could see GDP growth in excess of 19% by the end of 2011. Similarly, nominal GDP is forecast to grow by 22.4%, from $122.3bn at the end of 2010 to $149.7bn by the end of 2011. These gains can be attributed primarily to the country’s rapidly expanding energy sector, which saw growth of nearly 36% in the third quarter of 2010, due to increased production and rising oil prices.

Investor confidence in Kuwait’s energy industry should get a welcome fillip from reports that the state-owned oil company is set to increase domestic oil refining capacity by more than 50% over the next five years.

In an effort to meet rising domestic demand and keep the cost of imports to a minimum, Oman is looking to boost its production of natural gas. However, the levels of investment necessary to exploit the Sultanate’s difficult-to-tap reserves, means that margins may be squeezed until gas prices rise – something analysts are already predicting.

Saudi Arabia is looking to diversify its domestic power industry away from its existing reliance on fossil fuels by investing heavily to make renewable energy the Kingdom’s central source of electricity, a move that will extend the life of its oil fields, protect export earnings and pay environmental dividends.

For Thailand’s Fortune 500-listed energy giant PTT, 2011 could be one of the busiest years since the firm was privatised in 2001. Its overseas expansion programme is progressing apace with 43 projects under way in 12 countries. At the same time, however, falling reserves in its own backyard and rising costs could have an impact on medium-term growth.

In a dramatic move on February 17, the state government halted bidding for a new 300-MW coal-fired power station in Lahad Datu, citing environmental concerns. Sabah Chief Minister Musa Aman told local press that, “Sabah needs to increase power supply to meet the increasing development, but the state cannot afford to put its natural environment at risk.” He noted that protecting Sabah’s environment was crucial for the growing tourism sector, particularly given the state’s efforts to promote nature tourism.