MENA: A region poised to deliver

The LNG market in the Middle East and North Africa (MENA) faces renewed uncertainty following the June 2025 conflict involving Iran. Disruptions in the Strait of Hormuz briefly halted tanker movements and pushed up risk premiums, highlighting the region’s vulnerability as a critical energy corridor.

While key exporters like Qatar, Algeria, and Egypt continue to expand capacity, recent events may force a reassessment of supply security, logistics, and investment risk and reshape LNG dynamics across the region.

The MENA region continues to serve as a cornerstone of the global LNG market, currently accounting for over one-third of global LNG exports. Amid shifting global energy dynamics – marked by European efforts to diversify supply and sustained growth in Asian demand – MENA producers are capitalising on their cost competitiveness, strategic geography, and abundant reserves.

The region is undergoing a transformative phase, with major infrastructure expansions, long-term supply agreements, and technological advancements positioning it for sustained leadership in the LNG sector. Qatar is spearheading this expansion with plans to nearly double its production capacity by 2030, while Oman is pioneering clean-powered LNG with its Marsa LNG project. The UAE is rapidly developing its Ruwais LNG terminal, which will more than double its export capacity and reduce emissions through electrification.

In North Africa, Algeria is aggressively increasing output to meet European demand, backed by new discoveries and pipeline connectivity. Egypt, facing domestic production declines, has shifted from exporter to importer, leveraging FSRUs to stabilise its supply and establish itself as a regional gas logistics hub. Meanwhile, countries like Kuwait, Bahrain, Iraq, and Jordan are enhancing import infrastructure and diversifying sources to meet rising domestic energy needs.

As regulatory uncertainty and cost pressures dampen the pace of North American LNG expansion, MENA is seizing the opportunity to capture greater market share. The region’s integrated strategies and growing flexibility are cementing its role as a global LNG powerhouse through the end of the decade.

Qatar

Qatar remains the leading LNG exporter in the MENA region, currently producing 77 million tpy. Its dominance is underpinned by the North Field Expansion project, the largest LNG development globally, with the North Field East project expected to boost capacity to 110 million tpy by mid-2026, followed by the North Field South project, which aims to increase output further to 126 million tpy by 2028.

QatarEnergy has signed multiple long-term sale purchase agreements in the past with buyers in China, India, and Europe. Qatar has also deepened ties with Germany and Italy, positioning itself as a long-term supplier amid Europe’s pivot from Russian gas volumes. QatarEnergy has also progressed its LNG fleet renewal and expansion project, with more than 60 new LNG carriers on order from Korean shipyards.

These developments are supported by multibillion-dollar investments in infrastructure, including a US$6 billion contract signed with Chinese shipyards for LNG carriers expected to be delivered by 2029. Qatar continues to secure long-term supply agreements, recently entering negotiations with Japanese firms for up to 3 million tpy, thereby solidifying its role in both Asian and European energy security.

Additionally, Qatar has announced plans to trade 30 – 40 million tpy of non-Qatari LNG by 2030, expanding its influence in global LNG trading markets. Qatar has also enhanced its logistical flexibility through Qatar Gas Transport Co. Ltd’s joint ownership with Excelerate Energy of the FSRU Exquisite, which has been operating in Pakistan since 2015 under a long-term agreement with Engro Elengy Terminal Ltd at Port Qasim.

Oman

While playing a relatively marginal role in the LNG market in the MENA region, Oman’s LNG sector has taken a significant step forward with the ground-breaking Marsa LNG project on 1 May 2025. This US$1.6 billion project, a joint venture between TotalEnergies and OQEP, will be the Middle East’s first LNG bunkering hub, powered entirely by electricity and supplemented by a 300 MWp solar photovoltaic plant. The facility is expected to commence operations in 2028.

Additionally, in 2024, Oman unveiled plans for the addition of a fourth LNG train to its existing facility at the Qalhat industrial complex in Sur, Oman, which is slated to increase its capacity by up to 3.8 million tpy. Leading international contractors are lining up for a key EPC contract from Oman LNG for the expansion.

UAE

In 2025, the UAE is rapidly advancing its LNG ambitions, spearheaded by the Ruwais LNG project – an electric-driven, low-carbon facility featuring two liquefaction trains, each producing 4.8?million tpy (total 9 million tpy), powered entirely by the national power grid, and set to commence operations around late 2028. ADNOC Gas has awarded US$2.1?billion in infrastructure contracts for pipeline, compression, and pre-processing facilities on site at Ruwais, part of a broader US$15?billion CAPEX roadmap intended to more than double its LNG output to over 15?million tpy. In June 2024, the project achieved final investment decision status, with Shell, BP, TotalEnergies, and Mitsui each holding a 10% stake and the project majority-owned 60% by ADNOC. ADNOC has already signed multiple long-term LNG supply agreements, including a 15-year, 0.8?million tpy deal with Osaka Gas and a 1 million tpy pact with Germany’s EnBW, underscoring global buyer confidence.

Looking ahead

The outlook for MENA’s LNG sector is one of strategic growth and deeper global integration. Driven by rising global demand for lower-emission fuels and the structural shift away from coal and oil, LNG will remain a critical component of the global energy mix – and the MENA region is poised to deliver.

In the coming years, Qatar’s massive North Field expansions and efforts to become a leading global LNG trader will reinforce its dominance. Oman and the UAE are developing next-generation terminals focused on emissions reduction and market resilience, while Algeria is doubling down on upstream development and export routes to Europe. Egypt’s pivot to LNG imports reflects evolving energy balances, yet also highlights its emerging role as a regional logistics hub.

Meanwhile, newer importers such as Iraq, Jordan, and Bahrain are investing in FSRUs and long-term contracts to shore up energy security. Kuwait remains the region’s largest LNG importer, underpinned by the world-leading Al Zour terminal.

Taken together, these developments underscore MENA’s increasingly diversified and resilient LNG ecosystem. With over US$50 billion in announced or ongoing projects, the region is not only expanding capacity, but also reshaping its role – from exporter and importer to global trader, hub, and clean energy innovator.

Read the rest of this abridged article, which covers many more regions including Yemen, Algeria, Egypt, Kuwait, and more in the full issue here!

 

Read the article online at: https://www.lngindustry.com/special-reports/30122025/mena-a-region-poised-to-deliver/