Forbes/AFX News Limited: Shell sees global natural gas demand rising 3 pct a year over next 15 yrs: Posted Wednesday 12 October 2005


LONDON (AFX) - Royal Dutch Shell Group PLC expects the global demand for natural gas to increase about 3 pct annually over the next 15 years as consumers clamour for cleaner and more environmentally friendly fuel.

The market for liquefied natural gas will be expanding at a faster rate of 8-10 pct each year, said Linda Cook, Shell's executive director for Gas & Power.

At least 2 trln usd will have to be invested over the next 20 years to achieve that growth, 'a real challenge even for an industry accustomed to doing the impossible,' she told a conference of the Society of Petroleum Engineers in Texas on Monday.

And there's no shortage of resources to tap, she said, citing a US Geological Survey data showing that there is still more than 13,000 trln cubic feet of discovered and undiscovered gas.

'We could debate this figure, but undoubtedly, theres much more gas to find and develop. The challenge for all of us is to maximise recovery from existing resources and lower the cost of developing new ones, conventional and unconventional,' Cook added.

In chasing these resources, however, the industry has to face technical, as well as social and environmental, 'challenges', particularly if the gas is situated in complex terrains.

But Cook is confident companies can overcome these hurdles.

'I have no doubt that this industry has the capabilities, creativity and commitment to meet this challenge,' she stressed.

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