Table of Contents
1 Table of Contents 4
1.1 List of Tables 9
1.2 List of Figures 12
2 Executive Summary 13
2.1 Impact of Current Global LNG Surplus Scenario on Middle East Exports 13
2.1.1 Low demand from OECD Europe and America to Continue to 2014 13
2.1.2 Global LNG Demand Short Term Outlook 14
2.1.3 Amidst low demand Conditions and competition from Africa, new Supply Projects are likely to witness delays 14
2.2 Middle East LNG Exports to Increase by 52% over the next decade 15
2.2.1 Middle East Annual LNG Production Forecast, 2000- 2020 15
2.3 Iran, Iraq, Bahrain and Israel Offer new LNG Construction and Contract Opportunities 16
2.3.1 Middle East Planned LNG Projects and Investments, 2011- 2015 16
2.4 Middle East Exporters Generate over 6% of their GDP Earnings through LNG exports on Average 17
2.4.1 Middle East LNG Sales Revenues by Country, 2010 17
2.5 Over 21% of Middle East Gas Exports are made through LNG tankers 17
2.6 Low Gas Supply Costs and Technological Advantages Lead to lower LNG Production Costs for Middle East Exporters 18
2.7 Unlike Asia Pacific, Middle East Exporters Prefer Sales to Diversified Markets 19
2.8 Qatar Petroleum and Exxon Mobil Corporation Dominate the Middle East LNG Industry 20
2.9 Over 80% of Middle East LNG Export Capacity is contracted under Long and Medium Term Contracts 21
2.10 Power generation, Industry Sector and Feedstock Usage to Drive Regasification Industry Growth 22
2.11 Despite Fourth Largest Gas Reserves, Saudi Arabia Continues to Struggle to meet its Domestic demand 22
3 Middle East LNG Trends and Drivers 24
3.1 Industry Snapshot 24
3.1.1 Reserves and Production 24
3.1.2 Liquefaction Capacity and Terminals 24
3.1.3 Actual LNG Trade (Exports) 25
3.1.4 Market Structure 25
3.1.5 Regasification Front 25
3.2 Middle East to witness the largest natural gas production growth globally in the next decade 27
3.2.1 Natural Gas Production in Middle East to Stand at 610.7 Bcm in 2020 27
3.3 Middle East LNG Exports Peaked in November at 7.54 million tonnes 30
3.3.1 Middle East Monthly LNG Exports by Region, 2000- 2010 30
3.4 Driven by Investments in LNG, Middle East Oil and Gas Capital Expenditure will stand at $224 billion in 2011 30
3.5 LNG Projects in Middle East to be developed in joint ventures with International Oil Companies 31
3.6 Iraq plans new LNG terminal to monetize its Vented Natural Gas 33
3.7 Middle East LNG export Prices stood at $8.68/MMBtu during 2010 33
3.8 North Field Moratorium and Increasing domestic demand Restrain New Project Developments in Qatar 33
3.9 Yemen Sells its LNG at Cheapest Prices globally due to Low priced Long term contracts 34
3.10 Despite Low Gas Production, Low domestic demand Encourages Rise in Oman LNG exports 35
4 Middle East LNG Construction and Contracting Opportunities 36
4.1 Middle East LNG Capital Expenditure Forecasts by Country, 2010- 2015 36
4.2 Iran and Iraq Plan Construction of New Liquefaction Terminals by 2015 36
4.3 Israel looking for Construction Contractor for its $400 million LNG plant 37
4.4 I.M. Skaugen SE to Operate the Bahrain LNG terminal 37
4.5 Middle East Countries Open their LNG industries for multi-national Companies 38
4.6 Middle East LNG Market Structure, 2010 40
4.7 Over 19% of Middle East LNG Capacity is Available for Contracting 41
4.8 United Arab Emirates and Qatar have the Largest Percentage of Non- Contracted Capacity in the Region 43
4.9 Middle East Countries Generate the Largest LNG Revenues Globally 44
4.10 Middle East Sells over 20% of their Production in Spot and Short Term Markets 45
5 Middle East LNG Trade Patterns and Outlook to 2020 46
5.1 Shifting Global LNG Trade Patterns 46
5.2 Middle East LNG Production Forecast by Country, 2000- 2020 48
5.3 Middle East LNG Demand Forecast by Country, 2000- 2020 50
5.4 Proven Natural Gas Reserves by Country, 2000- 2010 51
5.5 Middle East LNG Export Patterns, 2010 51
5.6 Middle East Monthly LNG Exports by Region, 2010 54
6 Middle East Monthly LNG Quantities by Country 56
6.1 Middle East Exports Largest Volume of LNG in the World 56
6.2 Middle East Exports Peaked in November at 7.54 million tonnes 58
6.3 Qatar Continues to be the Largest LNG Exporter in Middle East 59
6.4 Asia Pacific Imports the Maximum Volume of LNG from Middle East 60
6.5 Japan, South Korea and United Kingdom Provide Maximum Revenues for Middle East Exporters 61
6.6 Qatar Monthly LNG Trade by Importing Country, January 2010- December 2010 62
6.7 Oman Monthly LNG Trade by Importing Country, January 2010- December 2010 63
6.8 Yemen Monthly LNG Trade by Importing Country, January 2010- December 2010 64
6.9 United Arab Emirates Monthly LNG Trade by Importing/Exporting Country, January 2010- December 2010 65
6.10 Kuwait Monthly LNG Trade by Supplying Country, January 2010- December 2010 66
7 Middle East Monthly Average LNG Prices by Country 67
7.1 Middle East LNG Export Prices Higher than Global Average in 2010 67
7.2 Middle East Countries Sell Around 20% of their Production in Spot and Short Term Markets 67
7.3 Middle East LNG was Available Cheaply During January and February in 2010 68
7.4 Kuwait Increasing Its LNG Imports to Meet its Summer Demand 69
7.5 Renewed Demand in Asia Pacific Boost Middle East LNG Prices 69
7.6 Qatar Monthly LNG Export Prices by Importing Country, January 2010- December 2010 70
7.7 Oman Monthly LNG Export Prices by Importing Country, January 2010- December 2010 71
7.8 Yemen Monthly LNG Export Prices by Importing Country, January 2010- December 2010 71
7.9 United Arab Emirates Monthly LNG Export and Import Prices by Country, January 2010- December 2010 72
7.9.1 Monthly LNG Import Prices 72
7.9.2 Monthly LNG Export Prices 73
7.10 Kuwait Monthly LNG Import Prices by Supplying Country, January 2010- December 2010 74
8 Middle East LNG Sale Purchase Agreements 75
8.1 Middle East Supply Contracts are mostly Free-On-Board based 75
8.2 Middle East LNG Contracted Capacities by Country, 2000- 2020 76
8.3 Middle East LNG Available Capacities for Contract by Country, 2000- 2020 77
8.4 Qatar LNG Contract Agreements- Long and Medium Term SPAs 78
8.5 Oman LNG Contract Agreements- Long and Medium Term SPAs 80
8.6 Yemen LNG Contract Agreements- Long and Medium Term SPAs 81
8.7 United Arab Emirates LNG Contract Agreements- Long and Medium Term SPAs 81
9 Middle East LNG Companies- Business and LNG Profiles 82
9.1 Company Profile of Qatar Petroleum 82
9.1.1 Qatar Petroleum Overview 82
9.1.2 Qatar Petroleum LNG Operations by Country 83
9.1.3 Qatar Petroleum weighted Liquefaction Capacity by Terminal 83
9.1.4 Qatar Petroleum Contact Information 84
9.2 Company Profile of Exxon Mobil Corporation 84
9.2.1 Exxon Mobil Corporation Overview 84
9.2.2 Exxon Mobil Corporation LNG Operations by Country 85
9.2.3 Exxon Mobil Corporation weighted Liquefaction Capacity by Terminal 85
9.2.4 Exxon Mobil Corporation Contact Information 86
9.3 Company Profile of Total SA 86
9.3.1 Total SA Overview 86
9.3.2 Total SA LNG Operations by Country 86
9.3.3 Total SA weighted Liquefaction Capacity by Terminal 87
9.3.4 Total SA Contact Information 88
9.4 Company Profile of Royal Dutch Shell Plc 88
9.4.1 Royal Dutch Shell Plc Overview 88
9.4.2 Royal Dutch Shell Plc LNG Operations by Country 89
9.4.3 Royal Dutch Shell Plc weighted Liquefaction Capacity by Terminal 90
9.4.4 Royal Dutch Shell Plc Contact Information 90
9.5 Company Profile of Yemen Gas Company 91
9.5.1 Yemen Gas Company Overview 91
9.5.2 Yemen Gas Company LNG Operations by Country 91
9.5.3 Yemen Gas Company weighted Liquefaction Capacity by Terminal 92
9.5.4 Yemen Gas Company Contact Information 92
9.6 Company Profile of Kuwait National Petroleum Corporation 93
9.6.1 Kuwait National Petroleum Corporation Overview 93
9.6.2 Kuwait National Petroleum Corporation LNG Operations by Country 93
9.6.3 Kuwait National Petroleum Corporation weighted Regasification Capacity by Terminal 93
9.6.4 Kuwait National Petroleum Corporation Contact Information 94
10 Middle East LNG Companies- Capacity Additions and Updates 95
10.1 LNG Capacity Additions through Commencement of New Terminals 95
10.2 Qatar LNG Terminal Details 96
10.3 Oman LNG Terminal Details 97
10.4 Yemen LNG Terminal Details 97
10.5 United Arab Emirates LNG Terminal Details 98
10.6 Kuwait LNG Terminal Details 98
10.7 Iran LNG Terminal Details 99
10.8 Iraq LNG Terminal Details 99
10.9 Bahrain LNG Terminal Details 99
10.10 Israel LNG Terminal Details 100
11 Middle East LNG Industry Developments, 2010- 2011 101
11.1 Qatar's Rasgas renews LNG deal with French EDF – Oct 30, 2011 101
11.2 China May Invest in Iran LNG Plant Construction, Official – Oct 29, 2011 102
11.3 India, Qatar disagree on pricing of LNG – Oct 29, 2011 103
11.4 Qatar’s gas income exceeds oil revenue – Oct 28, 2011 104
11.5 $800m Bahrain LNG terminal on way – Oct 26, 2011 105
11.6 Yemen LNG fixes feed line, readies for restart – Oct 25, 2011 107
11.7 BP to invest heavily in Oman’s gas sector – Oct 24, 2011 108
11.8 Israel eyes LNG deal with Qatar – Oct 21, 2011 110
11.9 Qatar to ship record 8.3M tons of LNG to South Korea – Oct 18, 2011 111
11.10 Yemen LNG Plant Production Halted After Gas Pipeline Attack – Oct 15, 2011 111
11.11 Final decision on Oman gas project in 2013: BP – Oct 11, 2011 112
11.12 Middle East LNG Demand May Grow Tenfold: Official of Gazprom – Oct 4, 2011 114
11.13 Kuwait extends LNG imports into Nov: KPC – Oct 4, 2011 117
11.14 Rasgas plans seven plant shutdowns in 2012 – Oct 3, 2011 118
11.15 Iraq aims to become LNG leader – Sep 6, 2011 119
11.16 Europe's gas markets face tight start to winter – Aug 30, 2011 120
11.17 Israel's National Planning Council approves floating LNG terminal plan – Aug 3, 2011 122
11.18 PLN delays plan to import LNG from Middle East – Jul 30, 2011 124
11.19 First Bahrain LNG Output Could Start by 2014 End – July 5, 2011 125
11.20 Israel readies LNG terminal to cover gas supply gap – June 22, 2011 129
11.21 India in talks with Indonesia, Kuwait for LNG supply – Apr 19, 2011 131
11.22 Kuwait eyes LNG project Down Under – Apr 7, 2011 131
12 Appendix 134
12.1 Abbreviations 134
12.2 LNG Conversions 134
12.3 LNG Pricing 135
12.4 Sources and Methodology 137
12.5 About LNGReports 138
12.6 Disclaimer 138
List of Tables
Table 1: Global Short Term LNG Demand Forecast by Region, 2010-2014 14
Table 2: Middle East Planned LNG Projects, Capacities and Investments, 2011-2015 16
Table 3: Middle East GDP and LNG Revenues, 2010 17
Table 4: Global LNG Trade Movements, million tonnes, 2010 19
Table 5: Middle East LNG Export Market Snapshot, 2010 26
Table 6: Middle East LNG Import Market Snapshot, 2010 27
Table 7: Middle East Yearly Natural Gas Production, 2000- 2020 29
Table 8: Middle East Monthly LNG Exports by Region, million tonnes, 2010 30
Table 9: NOC- IOC Partnerships in Middle East LNG Terminals 32
Table 10: Middle East Planned Capital Investments, 2010-2015 36
Table 11: Middle East Liquefaction Capacity by Company, mtpa, 2000- 2015 39
Table 12: Middle East Contracted and Available LNG Capacities, mtpa, 2000-2020 42
Table 13: Middle East Available LNG Capacities, mtpa, 2000-2020 43
Table 14: Global LNG Revenues by Region, $bn, 2010 44
Table 15: Middle East LNG Production Forecast by Country, million tonnes, 2000- 2020 49
Table 16: Middle East LNG Demand Forecast by Country, million tonnes, 2000- 2020 50
Table 17: Middle East Proven Natural Gas Reserves, Tcm, 2000- 2010 51
Table 18: Middle East Monthly LNG Trade Patterns, million tonnes, 2010 -- I 52
Table 19: Middle East Monthly LNG Trade Patterns, million tonnes, 2010-- II 53
Table 20: Middle East Monthly LNG Exports by Importing Regions, million tonnes, January- December 2010 54
Table 21: Global LNG Exports by Region, mtpa, 2010 57
Table 22: Qatar Monthly LNG Export Volumes by Destination Country, mtpa, January- December 2010 62
Table 23: Oman Monthly LNG Export Volumes by Destination Country, mtpa, January- December 2010 63
Table 24: Yemen Monthly LNG Export Volumes by Destination Country, mtpa, January- December 2010 64
Table 25: United Arab Emirates Monthly LNG Export Volumes by Destination Country, mtpa, January- December 2010 65
Table 26: United Arab Emirates Monthly LNG Import Volumes by Source Country, mtpa, January- December 2010 65
Table 27: Kuwait Monthly LNG Export Volumes by Destination Country, mtpa, January- December 2010 66
Table 28: Middle East Monthly Average LNG Prices, $/MMBtu, January- December 2010 68
Table 29: Qatar Monthly LNG Export Prices by Destination Country, $/MMBtu, 2000- 2010 70
Table 30: Oman Monthly LNG Export Prices by Destination Country, $/MMBtu, 2000- 2010 71
Table 31: Yemen Monthly LNG Export Prices by Destination Country, $/MMBtu, 2000- 2010 72
Table 32: United Arab Emirates Monthly LNG Import Prices by Source Country, $/MMBtu, 2000- 2010 72
Table 33: United Arab Emirates Monthly LNG Export Prices by Destination Country, $/MMBtu, 2000- 2010 73
Table 34: Kuwait Monthly LNG Import Prices by Source Country, $/MMBtu, 2000- 2010 74
Table 35: Middle East Contracted LNG Capacities, mtpa, 2000-2020 76
Table 36: Middle East Non- Contracted LNG Capacities, mtpa, 2000-2020 77
Table 37: Qatar LNG Sale Purchase Agreements -- I 78
Table 38: Qatar LNG Sale Purchase Agreements -- II 79
Table 39: Oman LNG Sale Purchase Agreements 80
Table 40: Yemen LNG Sale Purchase Agreements 81
Table 41: United Arab Emirates LNG Sale Purchase Agreements 81
Table 42: Qatar Petroleum LNG Operations by Country 83
Table 43: Qatar Petroleum Weighted Liquefaction Capacity by Terminal, mtpa, 2000- 2015 83
Table 44: Exxon Mobil Corporation LNG Operations by Country 85
Table 45: Exxon Mobil Corporation Weighted Liquefaction Capacity by Terminal, mtpa, 2000- 2015 85
Table 46: Total SA LNG Operations by Country 87
Table 47: Total SA Weighted Liquefaction Capacity by Terminal, mtpa, 2000- 2015 87
Table 48: Total SA LNG Operations by Country 89
Table 49: Royal Dutch Shell Plc Weighted Liquefaction Capacity by Terminal, mtpa, 2000- 2015 90
Table 50: Yemen Gas Company LNG Operations by Country 91
Table 51: Yemen Gas Company Weighted Liquefaction Capacity by Terminal, mtpa, 2000- 2015 92
Table 52: Kuwait National Petroleum Corporation LNG Operations by Country 93
Table 53: Kuwait National Petroleum Corporation Weighted Regasification Capacity by Terminal, Bcm, 2000- 2015 93
Table 54: Middle East Liquefaction Capacity Growth, mtpa, 2011-2015 95
Table 55: Middle East Regasification Capacity Growth, Bcm, 2011-2015 95
Table 56: Qatar LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 96
Table 57: Oman LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 97
Table 58: Yemen LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 97
Table 59: UAE LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 98
Table 60: Kuwait LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 98
Table 61: Iran LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 99
Table 62: Iraq LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 99
Table 63: Bahrain LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 99
Table 64: Israel LNG Terminal Details- Location, Operator, Ownership, Construction, Technology, Capacity and Infrastructure 100
List of Figures
Figure 1: Middle East Yearly LNG Exports, 2000- 2020 15
Figure 2: Role of LNG in Middle East Natural Gas Sector, 2010 18
Figure 3: Middle East LNG Export Market Structure (%), 2010 20
Figure 4: Middle East Natural Gas Production, 2000- 2020 28
Figure 5: Middle East Africa Capital Expenditure Outlook by Country, 2011 31
Figure 6: Yemen LNG Export Price by Country, 2010 35
Figure 7: Middle East Liquefaction Industry Structure, 2010 40
Figure 8: Global LNG Trade- Spot vs Long Term, 2010 47
Figure 9: Middle East LNG Exports by Importing Region by Month, million tonnes, 2010 55
Figure 10: Global LNG Exports by Region, mtpa, 2010 57
Figure 11: Middle East Monthly LNG Exports, mtpa, January 2010- December 2010 58
Figure 12: Global LNG Export Variations, 2009- 2010 59
Figure 13: Key Middle East LNG Buyers, 2010 60
Figure 14: Middle East LNG Exports- Spot Vs. Long Term, 2010 68