Energy projects and new initiatives continue to power business across the Middle East

Over the next four months, leading up to the influential and highly respected Middle East Electricity exhibition in February 2006, a number of other substantial deals are anticipated, and these will further stimulate an industry that is already demonstrating exceptional buoyancy. Already virtually completely sold out, and with demand for space still intense, the organisers are once again expecting a record turn out of the region’s key decision makers.

“One of the largest markets anywhere in the world for energy related products and services, the Middle East’s energy industry is active in all of the industry sectors, from power generation to natural gas, new and renewable energy to innovative lighting solutions” said Sarah Woodbridge, Exhibition Director, Middle East Electricity Exhibition. “The growth of the regional industry continues to outstrip global norms by a sizeable margin – a typical example is Iran, which has achieved 53% growth in its power generation output over the last eight years, leading many international companies to make every effort to establish and expand their regional presence to compete for the numerous highly valuable contracts that are issued for tender on a frequent basis. Qatar is another regional market that represents incredible business potential.”

The Middle East’s likelihood of developing and utilising clean and renewable energy received a big boost with the recent announcement of the establishment of the International Energy Group, by the Dubai-based company SS Lootah International. An innovative initiative to develop commercially viable clean and renewable energy projects worldwide, Eng. Yahya bin Saeed Al Lootah, Vice-Chairman of the SS Lootah Group, says that the launch of the IEG comes at time when vital international energy issues are having a great impact on all aspects of the economy and influences everyone’s daily life.

SS Lootah International is a pioneer provider of cleaner and renewable energy solutions throughout the Middle East region. The IEG has been formed with the objective of promoting and accelerating the adoption of clean energy methods to supplement conventional energy sources worldwide. The recent increases in fuel prices seen across the world as a result of natural disasters, has also acted as a catalyst in the polarisation of interest in alternative power sources, and will be responsible in part, for the acceleration of projects that will deliver new forms of power to an energy hungry region.

Initiating and developing projects that will use clean energy sources, it is expected that the IEG will play a crucial role in the introduction of commercially viable advanced energy technologies and applications for many industrial, business and government sectors. A seminar held alongside the launch of the IEG covered a wide range of related topics, including the global perspective, CNG technologies, hydrogen waste recovery, the Middle East solar business, diesel/gasoline hydrogen solutions, global initiatives on hydrogen technologies, lightweight storage solution for CNG and H2, landfill gas recovery and advanced fuels for transportation in the Emirates.

Speakers represented highly respected global organisations, including Hydrogenics of Canada, Sanyo Gulf, Dynetek Industries Ltd., of Canada, Prins Americas/Canada, Saskatchewan Research Council of Canada, Sacre-Davey Group, Canada and QuestAir Technologies.

Multi-billion dollar deals have also dominated the news across the region in recent weeks, covering power generation, natural gas and the GCC power grid. Larsen & Toubro ElectroMech Oman won a contract worth $37.15m from Petrochemical Development Oman for the upgrading of transmission lines and substations at its oilfields. The scope of work involves the construction of 293 kms of 132 kV overhead transmission lines to expand the existing electrical network.

The GCC power grid has also sparked interest across the world, as the total value of contracts for this ambitious project, which has the wholehearted support of all GCC countries, is estimated at US$3bn, according to Saudi Water and Electricity Minister Abdullah Al Hussein. The power grid will join Saudi Arabia, Bahrain, Qatar and Kuwait in the first phase, the UAE and Oman will link in the second phase, and all six member states will be linked together in the third phase.

The natural gas sector is also highly dynamic at present, as Middle East governments realise the immense value of their sometimes overlooked natural assets. Japan-based JGC has won a contract from Shell to build a 70,000 bpd gas-to-liquid plant and 100,000 bpd natural gas liquid recovery unit in Ras Laffan, Qatar. The plant, to be built with US-based Halliburton subsidiary Kellogg, Brown & Root, is expected to initiate operations in 2009, and the size of the order is highly likely to exceed earlier estimates in the region of US$6bn.

Also in Qatar, the recently announced $4 billion contract issued by Qatar’s Ras Laffan Liquefied Natural Gas Company for engineering, procurement and construction of the RasGas Onshore Expansion Project Trains 6 & 7 for the world's two largest LNG trains is just one of the many gas-related projects announced in the MENA region recently - the overall project is the largest liquefied natural gas project that has ever been announced.

Qatar, recognising the positive effect that effective utilisation of its natural gas deposits (which are the second largest anywhere in the world) is actively strengthening its infrastructure, and plans to acquire a total of around 90 Liquefied Natural Gas ships to handle its natural gas exports over the next five years, which means that the country will possess the world's largest fleet of LNG carriers.

Middle East Electricity, acknowledged as one of the world’s most vital trade events for the regional and global energy industries, is rated amongst the world’s top five trade events by exhibitors. It is also of critical strategic importance to international companies who are eagerly vying for the lucrative contracts emanating from the Middle East region. The inherent strength of the event lies primarily in the high number of senior key decision makers that visit the show, which has been specifically designed to support the development of regional energy infrastructures and stimulate the energy industry as a whole. Enthusiastically supported by the UAE Ministry of Energy, it acts both as a showcase for the global energy industry and a platform that allows the region’s key decision makers to see, first hand, the latest products and services that the world leaders have to offer.

Comprehensively covering the energy industry, Middle East Electricity features specially designed dedicated sections for Lighting, Natural Gas (highly relevant, as Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates account for 45% of total proven world gas reserves), Power Generation and New & Renewable Energy, strengthening its position as the power behind the Middle East energy industry. “One of our prime objectives is to continually enhance the event’s ability to bring together key personnel from both regional and international governments with representatives from the world’s leading energy companies - this in turn creates an environment in which the industry can grow dynamically, benefiting from exposure to and interaction with, companies that bring global industry expertise and experience to the region - the region’s needs and ambitions are clear, and we intend to maximise our contribution towards their achievement” concluded Woodbridge.

Staged at Dubai’s International Exhibition Centre from February 5-8, 2006, the show already has confirmed participation from the vast majority of the leading names from the global energy industry, including ABB, Eaton Electric, Ducab, Lucy Switchgear, Danway, LS Group, GE Energy, Perkins, Matsushita/Panasonic, Al Babtain, Cummins and Osram. A total of 18 pavilions are also confirmed, with Brazil, Poland and Croatia amongst the latest additions.