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LNG industry growth in Middle East and Africa will be driven by Nigeria and Kuwait

Publication Date: 31 Aug 2018 - By ReachX Team By ReachX Team
Actionable
Differentiated

Macro Commodity Other MENA Energy

Kuwait and Nigeria will contribute significantly to capacity growth in the Middle East and Africa’s LNG industry between 2018 and 2022, according to a new report. 

In a report for its clients, data and analytics firm GlobalData said Nigeria is set to have the highest liquefaction capacity additions, while Kuwait and Turkey will have highest regasification capacity additions among all countries in the Middle East and Africa.

The analytics outfit forecasts total liquefaction capacity in the Middle East and Africa to increase from 172.7 million tonnes per annum (mtpa) in 2017 to 234.0 mtpa in 2022 at an Average Annual Growth Rate (AAGR) of 6.1%. 

Similarly, the total regasification capacity is expected to grow from 3,007.6 billion cubic feet (bcf) in 2017 to 5,895.0 bcf in 2022 at an AAGR of 13.5%, GlobalData added.

Nigeria and Qatar are the major countries in the Middle East and Africa for LNG liquefaction terminals. “Nigeria (Nigeria), Ras Laffan III (Qatar) and Ras Laffan II (Qatar) are the largest liquefaction terminals in the region. In the Middle East and Africa, 11 liquefaction terminals are expected to become operational between 2018 and 2022. The total planned liquefaction capacity in 2022 is expected to be 53.3 mtpa,” GlobalData noted. 

Nigeria will lead the Middle East and Africa in terms of liquefaction capacity additions. The country will have the highest liquefaction capacity additions of 18.0 mtpa, increasing from 22 mtpa in 2017 to 40 mtpa by 2022 at an AAGR of 12%. 

It is expected to spend $25.26bn or more than 30% of the region’s total capital expenditure (capex) on new build liquefaction terminals during the outlook period.

Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, said: “Nigeria is expanding its liquefaction capacity to capture increasing global demand of natural gas. The country aims to become one of the major suppliers of LNG globally.”

In terms of regasification capacity additions in the Middle East and Africa, 10 regasification terminals are expected to become operational between 2018 and 2022. The total planned regasification capacity in the Middle East and Africa in 2022 is expected to be 2,887.5 bcf.

Kuwait will lead the Middle East and Africa with total additions of 1071 bcf. The country’s regasification capacity will increase from 264.8 bcf in 2017 to 1,335.8 bcf in 2022 at an AAGR of 32.4%. The country is expected to spend around $2.9bn on development of upcoming regasification terminals during the outlook period.

Turkey will be the next highest country in Middle East and Africa with planned regasification capacity additions of 392.7 bcf by 2022. The country is expected to spend roughly $548.5m on the development of new regasification terminals. 

In terms of largest liquefaction terminal by capacity in the outlook period, Mozambique in Mozambique is the top planned LNG liquefaction terminal in the Middle East and Africa with a capex of $15bn. The terminal is expected to start operations by 2022 with an expected capacity of 12 mtpa.

 

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