Thursday, August 8, 2019
Summarized article Example | Topics and Well Written Essays - 500 words
Summarized - Article Example Other factors that contributed to this was political instability and low prices of gas locally that led to the country importing this product from neighbours Qatar (the worldââ¬â¢s leading natural liquefied gas producer NLG). The massive rise in demand for gas for both domestic and industrial use is forcing a gradual change of things although it will take billions for Kuwait to be able to fully tap this product. This is because the gas in the region is of low quality and high in sulphur making it hard to extract (Reuters 2014). According to Kelli Maleckar of energy consultancy IHS, there is a current realization by most gas producers from Middle East on both the environmental and economic benefits of increased production of gas. The other benefit is that gas can help ease on the current rising power demands in the region. Kuwait and United Arab Emirates have been on the upfront of gas import to meet their power demands. This has boosted their dependence of imported gas especially during summer when power consumption goes up due to increased air conditioning. Saudi Arabia does not import gas (Reuters 2014). Political woes have been at the centre stage of delaying negotiations with major producing companies to tap the resources that lie within the country. These may also make it difficult for the country to import from outside. The country has entered into $3 billion and a $12 billion deals with BP and Shell for five years and six years respectively. Though this has been achieved there is always that possibility of a parliamentarian raising the deal at any given time as stated by Eman Ebed Alkadi of consultancy Eurasia Group. Other deals that Kuwait has entered into include the one with Qatar a few weeks ago, though this could be just for a short time as a long term deal with Qatar is almost impossible given Dohaââ¬â¢s support of the Islamists (Reuters 2014). The pipeline network in the region that has been in discussion for some time now would be an ideal
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