LNG in World Markets

Middle East LNG Imports Take Off As Demand Surges Middle East imports remain on pace to exceed 13 MMt in 2016 and 17 MMt by 2021, up from 10.3 MMt last year, according to Poten estimates, as gas demand for power generation continues to grow. Growing demand will offer opportunities for suppliers seeking homes for cargoes when demand in traditional Northeast Asian markets is slipping. State-owned Abu Dhabi National Oil Co. (ADNOC) will commission its 135,000-cu-m FSRU in August or September 2016, while Egypt could issue a request for proposal (RFP) for its third FSRU in the middle of this year. In Kuwait, state-owned Kuwait National Petroleum Corp. (KNPC) has awarded the EPC contract for its land-based regasification facility and storage tanks. The Dubai Supply Authority (DUSUP) is expected to keep its older FSRU, the Golar Freeze and wants to build a new jetty to accommodate two FSRUs in Jebel Ali. ADNOC’s FSRU remains on track to start up in August or September. The 135,000-cu-m FSRU, Excelerate, was leased for five years and has send-out capacity of 500 MMcf/d. It is scheduled to arrive in July at Ruwais. ADNOC had earlier met with trading companies and portfolio players to seek spot as well as mid-term supplies, but industry sources close to ADNOC said the UAE oil company is expected to get most of its supply from ADGAS, the emirate’s 5.8-MMt/y LNG producer. Because ADNOC is expected to import LNG on a seasonal basis over the Northern Hemisphere summer and with summer demand ending by September, ADNOC is not expected to buy spot or mid-term LNG this year.
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