Gulf’s Rising LNG Supplies

The rising liquefied natural gas (LNG) demand globally has stepped-up Gulf’s LNG expansion plans, solidifying its role as a cornerstone of global energy security.

The Global LNG demand is projected to surge to 600-700 million tonnes (Mt) by 2035, driven by Asia's growth, energy transition needs and new electricity demand from data centers/AI, requiring 200-300 Mt of additional supply.

Significant project development is underway in the US, and the Middle East. According to the International Energy Agency (IEA), more than 70% of global LNG final investment decisions in 2024 originated in the ME.

The Gulf producers Qatar, Oman and the UAE are projected to add at least 80 Mt a year of LNG capacity by 2030. This will involve investments of more than $50 billion, highlighting the region's strategic effort to strengthen its position as the world’s top LNG producing regions.

Qatar has traditionally been a global leader in LNG supplies. It accounts for more than 81% of Middle East's current annual LNG liquefaction capacity of 95 Mt, according to the Gas Exporting Countries Forum (GECF).

Qatar is expanding its North Field to raise the LNG capacity from 77 Mt in 2017 to 142 Mt per annum by 2030. Qatar’s North Field East and North Field South expansion projects, currently under construction, will add 48 Mt annually and the planned North Field West expansion project will add another 16 Mt, representing an increase of almost 85% from current production levels.

Internationally, QatarEnergy is advancing the Golden Pass LNG project in Texas, with the first train expected online in 2026. The project is expected to produce approximately 18 Mtpa of added capacity. Qatar’s LNG exports are expected to grow by 2.2 times, reaching 170 Mt annually by 2050, up from 78 Mt.

The UAE, a major oil producer in the Gulf, is now looking to boost its LNG production and export capacity. ADNOC's Ruwais LNG project will add two trains of 9.6 Mt, hence more than double the energy giant’s total LNG capacity to around 15 Mtpa by 2028. It will be the first LNG export facility in the MENA region to run on clean power.

The country is expanding export capacity with its investment arm (XRG) targeting 20-25 Mtpa LNG business by 2035.

Oman is also a significant gas producer, leveraging its strategic location and expanding its role in global energy corridors. The country’s natural gas trade will continue to consist predominantly of LNG exports.

Oman operates a single LNG liquefaction facility at Qalhat, with three units and a combined capacity of 10.4 Mtpa. A new 1 Mtpa Marsa (Sohar) LNG bunkering project is scheduled to commence operations in 2028.This project is set to establish Marsa LNG as the ME’s first LNG bunkering hub, positioning LNG as an alternative marine fuel to help reduce emissions in the shipping industry.

The Gulf region’s ambitious LNG expansion plans, exceptionally low production costs, typically below $5 per thousand cubic feet, and proximity to both Asian and European customers, gives it a lead in the global supply chain.

Editor