This book provides an in-depth study of the Middle East and North Africa (MENA) gas markets and their role as producers to both Atlantic and Pacific markets. It looks at the energy policies of MENA governments and whether domestic gas prices can be maintained in the face of rapid increases in gas demand and rising development costs.

The Middle East and North Africa (MENA) as a region accounts for around 40% of the world's proven gas reserves, yet only 10% of global supplies of gas are covered by MENA gas production. The potential for future expansion of the gas market in the both on the supply and demand side is significant since gas in many MENA states has become a cheap source of fuel for domestic industrialisation, a source of revenue for transit states, and a highly valued export commodity to multiple destinations in Asia and Europe. 50% of the world's liquefaction facilities under construction or planned for expansion will take place in MENA, which is likely to consolidate the region's role in the LNG market, allowing MENA producers to play the role of swing producers taking advantage of their location to supply both Atlantic and Pacific markets. This book, the first of its kind, will provide an in-depth study of the MENA states' individual gas markets, addressing the following questions: What are the policies of MENA governments regarding the development of their gas reserves? What are the main drivers of these policies? Will developments in the gas sector affect the ability of MENA governments to achieve the ultimate goal of economic diversification through developing energy intensive industries? Is the policy of promoting energy intensive industries viable in the long term? What role do foreign companies play in the development of domestic gas markets, export pipelines, and LNG export projects? Can current levels of domestic gas prices be maintained in an environment of rapid increases in gas demand and rising development costs?

Chapter 1. Natural Gas and Transition An economy in transition Transition and the natural gas sector Outline of the book Chapter 2. Energy in the Indian Economy Production and use of energy The potential for gas in India Chapter 3. Political Economy and the Industrial Structure of the Hydrocarbons Sector Chapter 4. Domestic Supply and Demand for Gas The meaning of forecasts of domestic supply and demand The significance of the New Exploration Licensing Policy (NELP) The demand for gas Overall demand estimates Demand by sectors Regional differences in gas supply and demand The overall forecast Chapter 5. The International Aspects of the Gas Sector The need for imports LNG terminals LNG supply contracts Prospects for using LNG in the power and fertiliser sectors Transnational pipeline proposals Chapter 6. Gas Utilisation Policy Gas utilisation in theory and practice The NELP Production Sharing Contract The revival of gas allocation under the NELP Reconciling the conceptual conflict within the NELP: policy provisions Gas utilisation and pipeline infrastructure The impact of gas allocation on prices The future of the Gas Utilisation Policy Chapter 7. Pricing Pricing regimes in the gas sector Pricing in the power sector Pricing in the city gas sector Conclusions on pricing Chapter 8. India’s Gas Story and the Way Forward Gas, fertilisers and transition Gas, power and transition City gas and public transport Getting the gas out of the ground Gas and regulation The government as coordinator of the economy and animator of development Government, gas and the environment How will the gas story end? Annexes Introduction to annexes I Excerpts from Article 21 of NELP VI regarding Gas Utilisation Provisions II Revised provisions relating to Gas Utilisation Policy in the NELP VII PSC III Press Release on Decision regarding sale of Natural Gas by NELP contractors and order of Priority to supply gas from RIL’s KG-D6 field IV Policy for Development of Natural Gas Pipelines and City or Local Natural Gas Distribution Networks V Revised Article 21 in NELP VII MPSC Regarding valuation of Natural Gas VI Press Release on Decision regarding sale and price of KG-D6 natural gas