GCC needs to strategise allocation of gas in a shifting energy world

Natural gas is more than a transitional fuel for the GCC; it is a strategic asset that can simultaneously advance national visions, facilitate sustainability, and optimise returns from hydrocarbon resources

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IN the Arabian Peninsula, where the world’s largest hydrocarbon reserves lie buried beneath shifting sands, natural gas is evolving from a mere energy staple into a cornerstone of economic reinvention.

The Gulf Cooperation Council (GCC) nations of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE collectively command over 40 trillion cu m of proven natural gas reserves, accounting for roughly 20 per cent of the global total.

This abundance has long fuelled industrial prowess and energy security, yet escalating domestic consumption, export ambitions, and the imperative for diversification now demand a recalibration of how every cubic metre is deployed.

As global markets grapple with tight liquefied natural gas (LNG) supplies and geopolitical flux, GCC leaders face a high-stakes balancing act: Prioritising power needs, nurturing high-value manufacturing, or bolstering export revenues to sustain visionary projects like Neom and Masdar City.

The stakes could not be higher, with the regional natural gas market valued at $45.95 billion in 2025, projected to reach $63.81 billion by 2033 at a 4.6 per cent compound annual growth rate, according to Business Research Insights.

NEED FOR STRATEGY: GAS AS GCC'S ECONOMIC BACKBONE

Natural gas has underpinned the GCC’s economic ascent for decades, transforming arid economies into global powerhouses.

With Qatar holding the region's largest reserves, worth 24.7 trillion cu m, the bloc’s collective endowment supports domestic energy, industrial expansion, and LNG exports that cement its status as a pivotal player in international energy markets.

In 2023, GCC countries produced 464.2 billion cu m of marketed natural gas, representing 10.8 per cent of the world total and a 1.4 per cent rise from the prior year, per The Arabian Stories News analysis of 2025 data.