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Thursday, 4 August 2016

Middle East Drives LNG Demand as Glut Makes Prices Attractive - Bloomberg

Middle East Drives LNG Demand as Glut Makes Prices Attractive - Bloomberg:

"Countries in the Middle East and North Africa led by Egypt, Kuwait and Morocco are boosting liquefied natural gas import capacity, taking advantage of low prices to meet rising energy demand.
The region plans to add permanent terminals and temporary, off-shore units that will increase annual capacity by 58.2 billion cubic meters in 2021, energy lender Arab Petroleum Investment Corp. said in a report. Capacity was 39.1 billion cubic meters at the start of 2016, according to a March publication of the International Group of Liquefied Natural Gas Importers, a Paris-based industry group. Arab Petroleum didn’t provide current figures. Based on the two sets of figures, annual capacity in the region would increase to 97.3 billion cubic meters in five years.
New output from Australia and the U.S. is adding to an LNG glut, dragging the Northeast Asia LNG price down to an average of $5 per million British thermal units this year from $14 in 2014, according to assessments by New York-based World Gas Intelligence. Growing demand and a lack of cross-border pipelines in the region prone to conflict are making the Middle East and North Africa a growth market for the fuel. The region will account for 6.5 percent of global LNG demand by the end of 2017, up from about 1 percent in 2013, according to Apicorp."

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