The Middle East is set to spend as much as $120 billion to increase gas production by 14 billion standard cubic feet a day (bcfd) to 86 bcfd by 2030, according to a new report by Wood Mackenzie.
The report ‘The Middle East steps on the gas’ shows gas supply growth in the Middle East is a compelling opportunity amid competition to supply Europe with the volumes lost from Russia since the Ukraine invasion.
The expected uptick in production is equivalent to the gas consumption of the entire European power sector and could help energy companies solve the energy trilemma of sustainability, security and affordability.
Around half of the 14 bcfd increase will be made available for export, which could have a game-changing effect on the global gas markets, especially as the LNG liquefaction capacity in the Middle East keeps growing. The other half will be absorbed by domestic demand growth.
“The Middle East can be part of the solution for the global gas markets as the region continues to ramp up production from its gigantic gas reserves,” says Alexandre Araman, principal analyst for Middle East Upstream at Wood Mackenzie.
“To fulfil the level of production growth that we have predicted, investments in non-associated gas projects are set to reach a record US$25 billion this year and a cumulative total of US$120 billion by the end of the decade.”
Qatar LNG exports should reach 126 million tonnes per annum (mmtpa) by 2030, while Abu Dhabi should be able to export 15.4 mmtpa after its new LNG facility comes onstream in 2028.