S04 ORME 6 2014 - Analysis 01_Layout 1 9/26/2014 2:44 PM Page 20
Analysis
LNG in the
MENA region Nicholas Newman outlines developments in the LNG markets and assesses future prospects. INCE THE FIRST two LNG tankers carrying 5,000 cu/m of LNG left the Algerian port of Arzew for the UK and France in 1958, the global annual trade in LNG has grown in value to reach US$150bn, accounting for some 10 per cent of the global trade in natural gas. Today, 24 countries export LNG to around 29 countries. Qatar, Malaysia, Australia, Nigeria and Indonesia are in rank order the world’s top five LNG exporters. Asia Pacific countries dominate the global market for LNG, notably Japan, South Korea, China and India. The LNG trade is expected to grow at
Qatar's Pearl GTL project is the largest gas to liquids plant in the world
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The North American shale gas revolution promises the beginning of US LNG exports”
a compound annual rate of 2.8 per cent between 2013 and 2019 (Hellenic Shipping News, 11 July 2014), underpinned by rising Asian demand. The Middle East and North Africa (MENA) countries hold a large percentage of the world’s natural gas supplies and provide more than a third of world LNG exports. Algeria, Kuwait, Iran, Saudi Arabia, UAE and Qatar are among the biggest holders of the region’s gas reserves. Qatar is currently the
world’s largest LNG producer and exporter. However, Qatar is expected to cede its crown to Australia by 2017, since its own exports are limited by the 2005 moratorium on increasing LNG exports as well as by rising domestic demand, and since Australia has 83mn tonnes per annum LNG capacity coming on line by 2017. Qatar’s main markets currently lie in Asia, Europe and other MENA countries. Oman and Yemen’s chief markets lie in Asia.
Qatar tops the list of LNG exporters, ahead of Malaysia, Australia and Nigeria
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