MENA countries investing $10.3 billion on LNG: APICORP

Despite its huge oil and natural gas reserves, MENA (Middle East and North African countries) will spent roughly $10.3 billion on liquefied natural gas-importing facilities in the medium-term to meet growing demand, the Arab Petroleum Investments Corp. (APICORP) reports.

The MENA share of LNG demand will reach 6.5% by the end of 2017, up from 1% in 2013, according to APICORP Energy Research.

LNG imports by MENA consumer countries totaled 10.5 billion cubic meters (370.65 billion cubic feet) in 2015, with 40% supplied by Qatar, Kallanish Energy understands.

But these levels will rise steeply, spurred by the present global supply overhang, which should allow regional buyers to lock in preferential prices and allow them to choose from a wider range of suppliers, according to APICORP.

The countries, some of which have problems with creditworthiness, will be cautious about investment in permanent LNG import terminals and increasingly will charter floating storage and regasification units (FSRUs) as a temporary and lower cost solution, APICORP believes.

Source: Kallanish Energy