Latest news with #WaelAbdelMoati
Zawya
24-06-2025
- Business
- Zawya
Arab LNG capacity to reach 228 mtpa by 2030
The Arab region's total liquefied natural gas (LNG) capacity is expected to rise to 228 million tonnes per annum (mtpa) by 2030, significantly strengthening its role in the global gas market, according to Wael Abdel Moati, Gas Industry Expert at the Organisation of Arab Petroleum Exporting Countries (OAPEC). In an exclusive interview with Zawya Projects, Moati said new LNG projects currently under construction in Qatar, the UAE, Oman, and Mauritania are likely to take the region's capacity to 200 mtpa by 2028. 'An additional 28 mtpa could be added if projects currently in the planning phase reach Final Investment Decision (FID) in the coming years, taking the total capacity to 228 mtpa by 2030,' he said. Moati said each Arab country has different development plans depending on the resources, infrastructure maturity, local market needs and plans to export gas or LNG. 'For instance, in Mauritania and Qatar, the focus is to exploit the gas resources to feed new LNG projects, while in Jordan the focus is on exploiting the Richa gas field to feed the local market and invest in LNG import structure for a more diversified gas supply mix. But collectively, they are enhancing the diversity and resilience of the Arab gas landscape - whether through production or export,' he said. Moati noted that a significant share of the projected growth from LNG projects under construction has already been secured through long-term agreements with prospective buyers in Europe and Asia. 'ADNOC, QatarEnergy, and Oman LNG, have already secured long-term sales agreements. Between January 2024 and March 2025, for instance, Arab LNG exporters signed around 25 LNG sale and purchase agreements covering up to 32 mtpa of LNG, reflecting a more diversified buyer base,' he said. Domestic gas demand on the rise Moati said population growth, industrial diversification, and growing electricity demand for powering cooling, desalination, petrochemical industries, and urban development are pushing up domestic gas demand. 'In this context, we estimate domestic gas demand in Arab countries will grow at an annual rate of 2.5 percent to 3.5 percent on average over the medium term,' he noted. 'To meet this rising demand, there are 15 gas development projects underway across the region, expected to bring 10 to 11 billion cubic feet per day of new supply over the next three to five years - all designated for domestic markets'. This trend highlights the critical role natural gas continues to play in supporting the region's energy security and economic growth, the OAPEC official said. Price expectations Moati said OAPEC expects prices to remain volatile in 2025 due to global supply disruptions, particularly in Europe following reduced Russian pipeline gas, and substantial demand growth in the Middle East. 'In the medium term, however, a period of oversupply is likely as new LNG projects in the U.S., Africa, and the Arab region come online weighing down on prices for up to two years before the market rebalances with continuing demand growth,' he said. U.S. LNG expansion and market implications Moati expects Trump administration's renewed push for LNG export licenses and the ongoing geopolitical instability to have a significant impact on future global LNG markets. He pointed out that the U.S., currently the world's largest LNG exporter with around 25 percent market share, is set to expand its position further with five new LNG projects in the commissioning or construction phases totalling 75 mtpa. The reversal of the Biden-era pause on LNG export licenses could accelerate another 70 mtpa of proposed capacity toward FIDs, he added. 'If realised, this new wave of U.S. LNG supply would, first, intensify competition with other LNG exporters as they seek to market new volumes and secure long-term offtake agreements with potential customers. Second, it could contribute to a potential oversupply in the global market in the next few years creating a buyer's market and third, it could weigh down on LNG prices, especially in the medium term, as the volume of new supply outpaces demand growth during the post-2025 period,' he concluded. (Reporting by Sowmya Sundar; Editing by Anoop Menon) (
Zawya
21-05-2025
- Business
- Zawya
Arab countries post modest LNG export growth in Q1 2025
Arab countries' exports of LNG (liquefied natural gas) saw a modest 1.1 percent year-on-year growth to 28.8 million tonnes in the first quarter of 2025 accounting for 26.4 percent of the global LNG trade, according to the quarterly report by the Organization of Arab Petroleum Exporting Countries (OAPEC). The report on LNG and Hydrogen Developments for Q1 2025, prepared by OAPEC's Gas Industry Expert Wael Abdel Moati, noted that Egypt halting LNG exports to serve its domestic market and Algeria's maintenance operations at the liquefaction units in Arzew and Skikda led to the decline in export volumes, which was offset by higher exports from Qatar, the UAE, and Oman during this period. Exports from Arab countries are expected to rise in the future following Mauritania's entry into the group of Arab LNG-exporting countries after the launch of the Greater Tortue Ahmeyim project, according to OAPEC. The organisation expects a 3.3 percent growth in LNG supply during 2025. Globally, 11 LNG Sales and Purchase agreements have been signed for the export of 16 million tonnes per year (mtpa) during the first quarter of 2025. Supply forecasts Global LNG liquefaction capacity is expected to rise by 27 mtpa to about 515.6 mtpa by the end of 2025 driven by the commissioning of two new projects in the United States, one in Canada and one in Mauritania. However, due to the technical nature of the commissioning tests, which may involve malfunctions or delays, and the staggered timelines for the four projects to enter actual production, the actual LNG supply is expected to be lower than the added design capacity. Moreover, recent U.S. sanctions targeting medium-scale liquefaction plants in Russia and the scheduled maintenance at several existing facilities in the coming months, are also expected to impact the volume of actual LNG supplies. According to the updated estimates from OAPEC, global LNG supplies are projected to increase by about 3.3 percent in 2025 to 425 million tonnes compared to 2024. This increase would help meet part of the rising European demand, particularly considering the halted Russian gas flows via Ukraine, which are estimated at around 15 billion cubic metres per year, equivalent to about 11 mtpa of LNG. Despite the expected supply increase, global demand is expected to absorb it, keeping LNG prices at elevated levels during 2025 compared to the previous year, driven by geopolitical factors and intensifying competition between the European and Asian markets for LNG, the report noted. Hydrogen developments Arab nations are targeting 8 mtpa of low carbon hydrogen production by 2030 and 27 mtpa by 2040, according to the OAPEC hydrogen tracker. At the end of March 2025, 130 projects for hydrogen production had been announced. Eight Arab nations have national hydrogen strategies in place while 65 countries have announced globally. 'This rapid development in policy formulation reflects a growing commitment by Arab countries to establish the legislative and regulatory frameworks necessary to enter the global hydrogen market. It also indicates a clear recognition of the importance of early preparation to seize investment and trade opportunities in this promising sector', the report noted. The report stressed that the region has the potential to become a key player in the global hydrogen market in the coming decades but will require several years of effort and coordination to establish a mature and stable global market. Achieving the ambitious goals set by Arab countries is contingent on: a) The creation of global demand for low carbon hydrogen b) A significant reduction in production costs driven by technological advances, c) The development of large-scale integrated infrastructure that includes transport, storage and distribution systems. Strengthening regional and international cooperation in areas such as technology transfer and knowledge sharing will be a pivotal factor in accelerating progress and reducing investment risks in this emerging sector, the report concluded. (Writing by Sowmya Sundar; Editing by Anoop Menon)
