GCC member states should place establishment of a joint gas network among their strategic priorities to ward off prospected gas shortage, according to a recently-released report.
The report, issued by the Kuwait-based Diplomatic Center for Strategic Studies, indicated that the GCC countries would suffer from the gas shortage in the future, despite possession of huge reserves by two regional states; Qatar and Iran.
However, such an eventuality can be averted through establishment of an integrated joint gas network among the regional countries, a mega venture that could also boost development in importing and exporting countries.
The exporting countries will benefit from low transportation costs, due to construction of the network and pipelines within a limited geographical zone. As to the importing ones, they will enjoy similar benefits in addition to being free of possible political strains as well as using proceeds to develop non-oil sectors.
As to prices, a long-term accord can be reached, following, as an example, a recent Iranian-Oman agreement.
Qatar is exempted in regard of such prospects. Its gas field, Ras Laffan of an exporting capacity of 3.2 billion cubic feet per day, supplies the UAE and Oman with gas.