In 2022, countries in the Middle East and North Africa (MENA) region collectively contributed nearly one-third (29%) to the global liquefied natural gas (LNG) market, according to data from the International Group of Liquefied Natural Gas Importers (GIIGNL). This group includes Qatar, Oman, the United Arab Emirates (UAE), Algeria, and Egypt. While the MENA region’s share of global LNG exports has seen a decrease from 47% in 2013 to around 30% in 2020, it remains a significant player in the global LNG landscape.
Qatar Dominates MENA LNG Exports
Qatar stands out as the leading LNG exporter in the MENA region, accounting for a substantial 70% of regional LNG exports in 2022. Globally, Qatar holds a spot among the top three LNG exporters, with an average of 10.3 billion cubic feet per day (Bcf/d) in exports over the past decade. Oman and the UAE follow as the second and third-largest LNG exporters in the Middle East, with consistent export averages of 1.2 Bcf/d and 0.7 Bcf/d, respectively, over the last ten years.
North Africa’s LNG Exporters
In North Africa, Algeria and Egypt are the key players in LNG exports. Algeria, a pioneer in LNG exports with over 40 years of history, has maintained stable exports ranging from 1.3 Bcf/d to 1.7 Bcf/d over the last decade. In contrast, Egypt exported 0.9 Bcf/d in both 2021 and 2022, with export volumes depending on domestic demand and available natural gas for export. Egypt’s LNG exports experienced a peak during the winter months of November 2022 through March 2023, averaging 2.0 Bcf/d, according to data from CEDIGAZ.
Export Destinations and Prices
The majority of MENA’s LNG exports find their way to South Asia and East Asia, constituting 65% (9.7 Bcf/d) of the region’s total LNG exports in 2022. Over the past decade, this export destination pattern has remained relatively consistent, fluctuating between 60% and 70% of the total. European imports of MENA’s LNG, sensitive to European natural gas demand, have ranged from 3.5 Bcf/d to 4.8 Bcf/d over the last ten years. In 2022, MENA’s exports to Europe averaged 4.5 Bcf/d, making up 30% of the region’s total LNG exports.
Global Gas Prices and Regional Trends
The article also delves into the recent trends in global gas prices, including the Henry Hub spot price and futures prices, as well as select regional spot prices. The piece provides insights into the factors influencing price changes in various regions, such as New England, the Midwest, and the West Coast.
Supply and Demand Dynamics
An overview of the supply and demand dynamics in the U.S. natural gas market is included, covering aspects like production, consumption, LNG exports, and pipeline receipts. The report notes that total U.S. consumption of natural gas increased by 21.0% compared to the previous report week, with notable rises in residential and commercial sector consumption.
LNG Vessels and Terminals
The report details LNG-related developments, including the number of LNG vessels departing U.S. ports and updates on LNG terminals. Notably, Freeport LNG Development, L.P. received approval to return to service Phase 2 facilities, including LNG Loop 2 and Dock 2 for ship loading.
Rig Count and Storage
The article concludes with information on the rig count, storage, and net injections, highlighting a net injection of 10 Bcf for the week ending November 24, a departure from typical net withdrawals during this period. The working natural gas stocks are reported to be 9% higher than the five-year average and 10% more than the previous year.
In summary, the MENA region’s role in the global LNG market, coupled with insights into international and regional gas prices, supply and demand dynamics, and key industry developments, underscores the complex and dynamic nature of the LNG landscape.