Middle East and East-Med 2021 gas outlook to 2050 Report

Commodity Market Report 01 September 2021

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Report summary

Over the last decade, natural gas has become the fuel of choice to meet a soaring domestic demand in the Middle East. However, strong disparities have emerged from unequal gas resource distribution, while geopolitics have limited cooperation on gas infrastructure and trade. Rapid growth of domestic demand has also created distortions – with subsidies supporting inefficient and over-use of gas and electricity. But new gas production is becoming more technically challenging. Pricing reforms are slowly becoming a reality and diversification is progressing. How will this impact the outlook for gas in the region? The gas landscape in the East-Mediterranean region will also change profoundly over the next years. Regional trade will enhance cooperation between countries and ultimately lead to gas surplus. LNG imports, which have been critical to filling the gap, are set to disappear. In turn, LNG exports are becoming a reality again, but challenges remain to achieve maximum utilisation.

East-Med
- The region is awash with gas, but overall demand growth has slowed
- Investment and fuel switching will spur growth in the medium-term
- Diversification in power threatening long-term gas demand
Middle East
- The Middle East is a major gas demand centre
- Available gas supply will sustain demand and exports through the forecast
- A more efficient usage of gas ahead
- The region offers premium conditions for renewable energy
East-Med
- Gas production from new mega fields adds to the regional supply glut
- But more gas is still needed to sustain demand and exports over the long term
Middle East
- Qatar production will almost double by 2050
- A stable operating environment has attracted many international investors to Oman, but the medium-term gas balance remains at risk
- Saudi Arabia is a major player in the global oil market, but all its gas is consumed domestically
- Internal inefficiencies hamper Iran’s energy sector
- UAE’s investments in unconventional and sour gas resources
- East-Med
- Middle East
- East-Med
- Middle East
- East-Med
- Middle East