In LNG the Middle East has traditionally been viewed as an export centre with almost half of annual global production.

With the arrival of three new floating regasification units of FSRUs to the region on the second quarter of this year this perception is beginning to change slowly.

The biggest import region remains by far North Asia and that doesn’t seams to change any time soon. As a whole its importing 73%.

The Middle East, however, has started to emerge as a new source of demand, which is potentially important in a market where requirements from traditional demands centres had been falling relativity supply.

So far for 2015 deliveries in North Asia have fallen of by about 6% compared to the same period of previous year, which translates the equivalent of about 1 BCM, this reduction has been driven mostly by temperatures in that region ever the past year and a half.

At the same time the falling demand has been met by increasing production with Queensland Curtis projects coming on line last year and producing well into the first half of this year.

In addition to these two projects, another 5 BCM/ month of Capacity is expected to come on line by the end of 2016, mainly from projects in the Pacific and Atlantic. With demand down on Asia and Global Supply expected to increase, the Middle East could help to absorb some of the extra productions expected to hit the Market in the near future.

LNG Watch by Luke Stobbart
 Associate Editor, European LNG