Nuke plants to aid growing demand for power
Beirut, June 22, 2011
Nuclear power plants in the Middle East need to satisfy the growth in electricity demand that is projected at 25 per cent per annum between 2010 and 2015, said a report.
Although the increase will be primarily met with natural gas, the availability of such gas at its current, heavily subsidized prices is uncertain, according to the latest Deloitte periodical publication, ‘Middle East Point of View’ which hosts independent analysis and views from experts in an article titled ‘Heavy Fuel’.
“The nuclear momentum has started across the region,” said Kenneth McKellar, partner and Middle East Energy and Resources Industry leader at Deloitte in the Middle East.
“Of the 60 countries around the world that have expressed an interest in, or are actively planning to introduce nuclear power, almost every country in the Middle East is represented,” he added.
Gas will not continue to be as readily available as it is now for power generation. By 2015, there will be increasing pressure on those Middle Eastern countries, which have indigenous gas reserves, to benefit from international market prices by exporting their gas, rather than using it domestically at rates which are projected, at that time, to reach no more than half that international market price, the report said.
Oil cannot be economically used for base-load power generation except at times of peak demand when a high marginal price justifies it. There are no significant reserves of coal in the Middle East to be used for power generation, whilst hydro-electric and other forms of renewable power generation are currently too insignificant to assist meaningfully in meeting electricity demand, according to the report.
As a result, nuclear energy is the only source of power generation that can realistically fill the supply-demand gap, the report said. – TradeArabia News Service
More Energy, Oil & Gas Stories
- ME oil, gas transaction value up 15pc
- Victrex to showcase new product in Paris
- Aramco JV puts off giant refinery overhaul to 2015
- Libya threatens to bomb N Korean tanker
- Bahrain 'producing 850MW of surplus power'
- 2,000 experts for Bahrain geosciences summit
- Libyan rebels start oil exports, bypassing govt
- Dubai drilling company set for London IPO
- Opec output soars on higher Iraq exports
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies
- GlassPoint appoints new Oman director
- Sheffield company opens Dubai hub
- Oman targets big rise in gas output
- Intertek buys UAE firm for $66m
- Qaiwan to tender Baizan refinery EPC contract
- Al Maha wins Oman Air fuel supply deal
- Iran to become top gas importer by 2025
- UAE hydrocarbon projects seen hitting $11bn
- Summit focus on occupational safety
- Aramco names new senior VP
- Siemens gets $253m Qatar power contract
- Taqa-led group's India deal worth $1.6bn
- Taqa-led group to buy India power plants
- Iraq oil exports hit record 2.8m bpd