Facetime with Ahmed Ali Al Sayegh

(CNN) -- As record oil prices dominate the headlines, natural gas is an energy sector gaining more recognition. MME's John Defterios (JD) talks with the CEO of Dolphin Energy, Ahmed Ali Al Sayegh (AS) about the importance of the natural gas sector, the impact of high oil prices, and increasing global energy demand.

Al Sayegh is head of the largest single energy initiative in the Middle East, linking the three Gulf states of Qatar, U.A.E. and Oman, and producing two billion cubic feet of gas a day, equivalent to 350,000 barrels of oil.

John Defterios begins by asking him why his company spent seven years building a giant natural gas plant an pipeline in a region swimming with oil.

(AS): It was clear from the beginning, we needed to import gas and the Qataris wanted to export gas. So there was economic alignment. We respected that and they respected our needs, but political will, I believe, these three countries are very close politically and they needed to exercise this closeness and this project provided a fantastic opportunity for us to come together.

(JD): It's fascinating. I don't think people realize the scope of this field. The Qatari side of the North Field is 14 per cent of the world's supply of natural gas. This has a long, long shelf life in terms of production, does it not?

(AS): It has a very long life. Our transaction is for 25 years but it can go much longer than that. We hope we will be able to produce more from this field to fill our pipeline to its maximum capacity.

(JD): There is a lot of political pressure now, or calls from Washington and the European Union for OPEC to provide more oil, more energy to the global market. But what is the reality? Is there is a capacity problem or is there not? What is from your view the reality today?

(AS): The reserves in the Middle East are there and the commitment from the governments in the Middle East to produce those reserves, existing production and extract production is there. The reality is, it takes four to five years to bring any extra capacity on stream.

(JD): But did everybody miscalculate the demand realistically from China and India on top of the demand from the existing OECD-countries?

(AS): I think it was, nobody knew there is going to be this much growth, and yes, it was miscalculated. But now, I think, everyone is investing to bring extra capacity on stream. We are doing this in the U.A.E., in Saudi Arabia, in Kuwait, in Iraq and I think the key issue is to keep producing in a sustainable manner without damaging our environment.

(JD): Are you surprised personally about and realistically about this oil price of $120 per barrel that we see today?

(AS): I would be much richer if I would not be surprised by this level. I think the demand is real, the region itself is growing and of course you have to add what is happening in China and India. I think, people and economies have adjusted to a $100 oil very well and we are happy to continue to provide the capacity and the investment to meet our export requirements. Beyond that anything what I say would be speculation.

(JD): I see the tone in the Middle East is much more pragmatic. So there is not a rush to get all this capacity built to get oil to market. Is this a change of attitude that needs to be preserved for future generations now?

(AS): Well, as I have mentioned to you, it must be sustainable. Hydrocarbons are a wealth of all these nations and they must produce them in a sustainable way. We are not reservoirs of oil. We are countries, people and with aspirations and futures. In that respect, I think, we are doing everything we can to bring this capacity on stream on time. And there is no reluctance to do this. The only real limiting factor, and you have been in this region, is the ability to build it, the ability to actually physically build it.