Explore Leading LNG Powerhouse Countries in the Middle East
LNG has become a pivotal resource as global energy demand shifts toward cleaner fuels. Thus, several Middle Eastern countries are stepping up as crucial producers & exporters, becoming LNG powerhouse countries.
This transformation is driven by investments supported by government policies, gas exploration, advanced infrastructure, and export capabilities.
As LNG demand from Asia & Europe surges, some Middle Eastern countries have transformed into LNG powerhouses.
The region has several leading LNG powerhouse countries due to its vast natural gas reserves, growing LNG production & export capabilities, and strategic geographical advantages.
Leading LNG Powerhouse Countries in the Middle East
This overview explores Africa’s leading LNG powerhouse countries, their natural gas reserves, production & export capabilities, and other dynamics. Here are the top LNG powerhouse countries in the Middle East:
Qatar
- LNG plant: Ras Laffan LNG Plant – Operational
- Location: Ras Laffan Industrial City, northeastern coast of Qatar
- Founding Date: 1984
- Operators:
- Qatar Energy: largest LNG producer
- Key International Partners: ExxonMobil, Shell, TotalEnergies, ConocoPhillips, Mitsubishi Corporation & Marubeni Corporation.
- Operations: Qatar operates an LNG production and export facility in Ras Laffan Industrial City.
- Infrastructure:
- 14 LNG trains, with capacities ranging from 3.2 MTPA to 7.8 MTPA per train.
- 6 new mega-trains under development.
- LNG storage tanks and condensate tanks.
- Massive storage tanks capable of holding millions of cubic meters of LNG. These tanks are vital for buffering LNG production and ensuring a steady supply for exports.
- Export terminal at Ras Laffan Port.
- Production Capacity: Current production capacity of about 77 million tons per annum (MTPA), and this is set to increase with the North Field Expansion project, which aims to raise the capacity to 126 MTPA by 2027.
- Gas supply: The North Field, located offshore, is the world’s largest non-associated natural gas field. Qatar shares it with Iran (where it is called South Pars).
- Proven Gas Reserves: 900 Trillion Cubic Feet, 3rd largest after Russia and Iran.
- Products: Liquefied Natural Gas, Condensates, Liquefied Petroleum Gas, and Natural Gas Liquids.
- Export Markets: In 2023, Qatar exported 79.8 million tons of LNG to clients worldwide for power generation, industrial use, and residential heating.
- Asia (Largest Market): Japan, China, India, Taiwan, Indonesia, and South Korea.
- Europe: United Kingdom, Italy, Germany, Spain.
- Americas: Mexico.
- Emerging buyers: Pakistan, Brazil, & Thailand.
- Challenges: Intense competition from other LNG powerhouses, fluctuating global LNG prices, geopolitical instability in the Middle East, and infrastructure and expansion challenges.
Overview
Qatar is the leading LNG powerhouse in the Middle East. It is the largest LNG producer and exporter in the Middle East & the world. Qatar shares borders with Saudi Arabia on the Arabian Peninsula’s northeast coast. Also, it shares sea borders on the Persian Gulf with the United Arab Emirates and Iran. Consequently, the country is strategically positioned to export LNG to Europe, Asia, and the Americas. As an LNG powerhouse, in 2023, Qatar exported 79.8 million tons of LNG to clients worldwide. Out of the 79.8 million tons, 15.1 million tons (19%) went to Europe via the Suez Canal. The future outlook for this LNG powerhouse in the Middle East is optimistic due to the rising global demand for LNG across Asia.
United Arab Emirates
- LNG plant:
- Das Island: Operational
- Ruwais LNG Project: to commence in 2028
- Location:
- Das Island: Offshore in the Arabian Gulf, about 160 kilometers northwest of Abu Dhabi.
- Ruwais: Abu Dhabi, along the western coast of the UAE.
- Founding Date:
- Das Island: 1977
- Ruwais: 2028
- Operators:
- Das Island ADNOC
- Ruwais LNG: ADNOC (60%), Shell (10%), TotalEnergies (10%), BP (10%), Mitsui (10%).
- Infrastructure:
- Das Island:
- Three (3) LNG trains in operation.
- Large cryogenic LNG storage tanks.
- Dedicated berths for LNG carriers & onsite loading facilities to ensure efficient export operations.
- Ruwais LNG
- Two (2) trains.
- Cryogenic Tanks
- Equipped to handle large LNG carriers and ensure rapid loading and unloading.
- Das Island:
- Production Capacity:
- Das Island: 6 million metric tons per annum of LNG production
- Ruwais: 9.6 million metric tons per annum.
- Gas supply: Abu Dhabi’s offshore fields, including Umm Shaif, Lower Zakum, and Abu Al Bukhoosh.
- Proven Gas Reserves: 290 Trillion Cubic Feet
- Products: Liquefied Natural Gas, Condensates, and Natural Gas Liquids.
- Export Markets:
- Asia: Japan, China, India, South Korea.
- Europe: United Kingdom, Italy, Spain.
- Challenges: Intense competition from other LNG powerhouses, fluctuating global LNG prices, geopolitical instability in the Middle East, and infrastructure and expansion challenges.
Overview
The UAE is another leading LNG powerhouse in the Middle East. The UAE produces LNG primarily from its large natural gas reserves in offshore and onshore fields, such as those near Das Island and Ruwais. Also, the country is strategically located with easy access to global shipping routes. Thus, it is an attractive LNG source for international markets, especially in Asia and Europe. The Abu Dhabi National Oil Company is the primary operator in the UAE’s LNG sector. It manages the production & export of LNG to clients worldwide. Furthermore, the country’s LNG industry is poised for growth, with projects like Ruwais LNG aiming to significantly increase export capacity from 9 to 15 million tons per annum by 2028.
Oman
- LNG Plant(s):
- Oman LNG
- Qalhat LNG
- Location:
- Oman LNG: Qalhat, near Sur, Oman, on the southeastern coast of the Arabian Peninsula.
- Qalhat LNG: Qalhat, near Sur, Oman.
- Founding Date:
- Oman LNG: 1994
- Qalhat LNG: 2000
- Operators:
- Oman LNG: Government of Oman (51%), Shell Gas BV (30%), TotalEnergies (5.54%), Korea Gas (5%), Mitsubishi Corp (2.77%), Mitsui & Co (2.77%), Partex (2%), Itochu (0.92%).
- Qalhat LNG: Oman LNG LLC, Shell Gas BV, & TotalEnergies.
- Infrastructure:
- Oman LNG:
- Three (3) LNG trains in operations.
- Gas Pretreatment Facilities.
- Large cryogenic LNG storage tanks.
- Dedicated berths for LNG carriers & onsite loading facilities to ensure efficient export operations.
- Qalhat LNG
- One (1) train
- Large Cryogenic LNG storage tanks.
- Equipped to handle large LNG carriers and ensure rapid loading and unloading.
- Oman LNG:
- Production Capacity:
- Oman LNG: Production capacity of 10.4 million tonnes per year (MTPA) of LNG.
- Qalhat LNG: Production capacity of 6.6 million tonnes per year (MTPA) of LNG.
- Gas supply: Oman’s central gas fields, including Saih Rawl, Saih Nihayda, and Barik fields.
- Proven Gas Reserves: 24 Trillion Cubic Feet
- Products: Liquefied Natural Gas, Condensates, and Natural Gas Liquids.
- Export Markets:
- Asia: Taiwan, Japan, China, India, South Korea.
- Europe: United Kingdom, Italy, Spain, and Netherlands.
- Challenges: Intense competition from other LNG powerhouses, fluctuating global LNG prices, geopolitical instability in the Middle East, and infrastructure and expansion Challenges
Overview
Oman is a well-established LNG Powerhouse in the Middle East. The country has leveraged its location to become a significant LNG exporter to Asian and European countries.
Saudi Arabia – Not Operational
Actively laying the groundwork for LNG production and trade as part of its Vision 2030 economic diversification plan.
Saudi Arabia is actively laying the groundwork for becoming an LNG powerhouse in the Middle East. Thus, Saudi Arabia is forming strategic partnerships with companies like TotalEnergies, ExxonMobil, and Sempra Energy to acquire LNG production and infrastructure expertise. Saudi Arabia aims to become a global LNG powerhouse by creating the necessary infrastructure to compete with established exporters such as Qatar, the United States, and Australia. The country’s export terminals will likely be strategically located along the Red Sea or the Arabian Gulf, enabling access to key Asian and European markets.
Iran – Not Operational
Actively laying the groundwork for LNG production and trade. Iran possesses the second-largest proven natural gas reserves in the world. Thus, making it a potential LNG powerhouse country in the Middle East.
- LNG Projects: Iran LNG, Pars LNG, and Persian LNG
- Locations
- Iran LNG: Tombak Port, Bushehr Province, southern coast of Iran along the Persian Gulf
- Pars LNG: Assaluyeh, a port city in Bushehr Province, southern Iran
- Persian LNG: Assaluyeh, a port city in Bushehr Province, southern Iran
- Capacity:
- Iran LNG: 10.8 million tons per year
- Pars LNG: 10 million tons per year
- Persian LNG: 16 million tons per year
- Operators
- Iran LNG: National Iranian Oil Company
- Pars LNG: TotalEnergies (France), Petropars (Iran), and National Iranian Oil Company
- Persian LNG: Shell, Respol, and National Iranian Oil Company
- Gas supply: South Pars Gas Field, the largest natural gas field in the world, located in the Persian Gulf.
- Proven Gas Reserves: 1,200 trillion cubic feet (TCF)
- Products: Liquefied Natural Gas, Condensates, and Natural Gas Liquids.
- Potential Export Markets: Asia & Europe
- Challenges: International sanctions, particularly by the United States and the European Union, intense competition from other LNG powerhouses, geopolitical instability in the Middle East.
Like Saudi Arabia, Iran is also actively seeking to become an LNG powerhouse in the Middle East. However, international sanctions, particularly by the United States and the European Union, have been the most significant impediment. Due to sanctions, Iran’s international partners withdrew from Iran’s LNG projects. In addition, these sanctions have restricted Iran’s access to LNG financing, expertise, and technology.
