Nigeria To Lead Region In LNG

Nigeria is set to have the highest liquefaction capacity additions, while Kuwait and Turkey will have the highest regasification capacity additions among all countries in the Middle East and Africa, a report by GlobalData.

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

Besides, the total regasification capacity is expected to grow from 3,007.6 Bcf in 2017 to 5,895.0 Bcf in 2022 at an AAGR of 13.5%.

Nigeria and Qatar are the major countries in the Middle East and Africa for LNG liquefaction terminals.

Nigeria LNG (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.

It added that 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%.

According to the report, the country 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 the GlobalData showed.

Soorya Tejomoortula, Oil and Gas Analyst at GlobalData, explains: “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.”

On regasification capacity additions in the Middle East and Africa, the report said 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 way in the region with 1071 Bcf in total additions. 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.

Tejomoortula adds: “Kuwait is increasing its LNG regasification capacity to meet its growing domestic power demand. The country is grappling with chronic electricity shortages, which is threatening its economic development. The new LNG terminal will also generate business opportunities to the local companies and helps in promoting industrial growth in the country.

Source: Independent

DutchEnglishFrenchGermanItalianPortugueseRussianSpanish