GCC states should partially liberalise natural gas prices to accelerate non-associated gas development in the energy-producing region while maintaining industrial sector growth, experts said.

The region is set to experience massive increase in demand for gas, driven by population and GDP growth as well as the establishment of new industries.
And low prices in inter-regional natural gas contracts are not expected to be repeated again as producers seek to maximise sales prices for new projects, said Martin Trachsel, vice-president Middle East, Shell International Gas and Power.
“Low prices are clearly not sustainable, people will not  develop gas at low prices,” he told an energy conference in Abu Dhabi. “Future prices will be higher and will give signals that we need to develop more gas resources.”
A project to supply Iranian gas to the UAE has been delayed over price wrangling, with Iran saying prices have risen sharply since the contract was signed.