Shafaq News/ Liquefied natural gas (LNG) exports hit arecord high of approximately 106.4 million tons in the first quarter of thisyear, while exports declined in the second quarter to 98.6 million tons,marking a 0.4% year-on-year decrease, the Organization of Arab PetroleumExporting Countries (OAPEC) reported
Exports rebounded in the third quarter, reaching 100.9million tons, representing a 2.5% year-on-year growth, according to the OAPEC.
Over the first nine months of 2024, total LNG exportsamounted to about 305.9 million tons, compared to 300.3 million tons during thesame period in 2023, with a modest growth rate of 1.9%. The report attributedthe limited growth to the lack of new production projects entering the globalmarket.
Top Exporting Countries
The US maintained its position as the largest LNG exporter,narrowly ahead of Australia and Qatar.
Qatar’s LNG exports for the second quarter stood at 19million tons, down 2.5% year-on-year, while the third quarter recorded 20.3million tons, the same level as 2023. In the first nine months of 2024, Qatarexported 60.1 million tons, slightly up from 60 million tons in the same periodin 2023, ranking second after the US.
Ranked third, with 59.3 million tons exported in the firstnine months of 2024, showing a 1.2% year-on-year increase.
Russia ranked 4th, with 24.7 million tonsexported, marking a significant year-on-year growth of 10.2%.
The United Arab Emirates (UAE) exports were 4.3 million tonsover the first nine months of 2024, a 13% year-on-year increase, with mostshipments headed to Asian markets, particularly India, Japan, China, and SouthKorea.
Egypt's LNG exports saw a sharp 87% year-on-year decline inthe second quarter, amounting to just 0.1 million tons, due to rising domesticdemand and the lack of surplus production for export. The total exports in thefirst nine months of 2024 reached 0.5 million tons, down from 2.8 million tonsin the same period in 2023. Egypt halted exports entirely starting May 1, 2024,prioritizing local needs.
Global LNG Demand
Global LNG demand fell by 1% to 99.1 million tons in Q2,primarily due to decreased European demand.
Demand rebounded in Q3, growing 4% year-on-year to 100.1million tons, driven by heatwaves in Asia.
Total demand for the first nine months of 2024 grew 1.8%year-on-year, reaching 307.1 million tons.
Price Developments
Average prices in Europe rose from $8.7 per million BTU inQ1 to $10 in Q2, then to $11.45 in Q3, influenced by supply cuts due toNorwegian maintenance programs.
In Asia, prices increased from $9.4 per million BTU in Q1 to$11.3 in Q2 and $13 in Q3, driven by industrial demand and heatwaves.
However, prices fell slightly in North America to $2.08 permillion BTU in Q2, with a modest rebound to $2.11 in Q3.
Hydrogen Developments
The global trend toward investing in hydrogen andincorporating it into national energy strategies has become evident, as thenumber of countries with national hydrogen plans rose to 58 by the end ofSeptember 2024.
Arab countries are rapidly advancing in the global hydrogensector, seeking to solidify their positions as key players in the clean energymarket.
The UAE leads these efforts, with Abu Dhabi’s Department ofEconomic Development signing a strategic agreement in June 2024 with a hydrogensolutions company to establish the first industrial complex for manufacturinghydrogen equipment and devices. This project, with investments totaling 1billion dirhams, aligns with the UAE's vision to rank among the world's top 10hydrogen producers by 2031 and enhance its leadership in sustainable energy.
In Algeria, Sonatrach signed a memorandum of understandingin July with three European companies, including Italy’s Snam, to conductfeasibility studies for exporting hydrogen via the Southern Hydrogen Corridor.This proposed pipeline, stretching 3,300 kilometers, aims to transport hydrogenfrom North Africa to European demand centers in Italy, Austria, and Germany.Supported by European gas network operators, the project targets transporting 4million tons of hydrogen annually by 2030, utilizing around 65% of existing oiland gas infrastructure.
Tunisia has signed eight memorandums of understanding fornew hydrogen production projects under its national hydrogen strategy. Theseinclude an agreement with a Saudi company to produce 600,000 tons of greenhydrogen annually using 12 GW of renewable energy, targeting exports to Europevia the Southern Hydrogen Corridor. The project will be executed in threephases, starting with 4 GW of renewable energy capacity and 2 GW ofelectrolyzer capacity, producing 200,000 tons of green hydrogen annually. Thetotal investment for the project is estimated at $6.4 billion.
Kuwait awarded a consulting contract to KBR in August 2024to develop a master plan for 17 GW of renewable energy and 25 GW of greenhydrogen production by 2050. The renewable energy plants will support domesticindustrial hydrogen use and exports, with the plan set to be completed within18
Egypt signed three new agreements in June 2024 for hydrogenand green ammonia projects, with total investments nearing $40 billion,bringing the number of announced projects in the country to 36, according toOAPEC updates.
Morocco’s Mohammed VI Polytechnic University signed amemorandum of understanding to develop innovative hydrogen storage solutionsfor transportation, leveraging its research center's expertise in collaborationwith leading industry practices.
In June 2024, Jordan’s Ministry of Energy signed 12memorandums of understanding to explore green hydrogen production, along with aframework agreement with an investor. The total number of proposed projects inthe country has reached 13, all focused on green hydrogen production.