The impact of the development of East. Med gas discoveries on the MENA region's LNG needs: A good signal!

For the third year in row, MENA region LNG imports decreased to reach 7 million tons in 2019. Such figure is the lowest one in the past five years. In 2016, the total LNG imports hit a record level of 17.5 million tons.

 The advent of East Mediterranean gas was the reason behind lowering the region dependence on LNG imports. Egypt was the largest LNG market accounting for nearly half of region’s total LNG needs in the past few years, however the situation reversed after successful implementation of governmental plans to expedite recent gas discoveries in the Mediterranean. Hence, LNG imports reached nearly zero level in 2019 and Egypt became a net LNG exporter!

Besides, Jordan, a minor-producer of gas, has also decreased the dependence on LNG imports, after switching to import piped gas coming from Tamar and Leviathan offshore fields. These consequences triggered MENA region to be no more a growing market for LNG.

Currently, there are six FSRUs moored in the region, which receive LNG shipments to meet the local market needs, mainly in Kuwait and UAE.

Another 3 LNG import terminals projects (in Kuwait, Sharjah and Morocco) are planned to come on stream over 2021-2025 period. The estimated CAPEXof these projects is ~ $ 9 M.