Shafaq News/ Liquefied natural gas (LNG) exports hit a record high of approximately 106.4 million tons in the first quarter of this year, while exports declined in the second quarter to 98.6 million tons, marking a 0.4% year-on-year decrease, the Organization of Arab Petroleum Exporting Countries (OAPEC) reported
Exports rebounded in the third quarter, reaching 100.9 million tons, representing a 2.5% year-on-year growth, according to the OAPEC.
Over the first nine months of 2024, total LNG exports amounted to about 305.9 million tons, compared to 300.3 million tons during the same period in 2023, with a modest growth rate of 1.9%. The report attributed the limited growth to the lack of new production projects entering the global market.
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 19 million tons, down 2.5% year-on-year, while the third quarter recorded 20.3 million tons, the same level as 2023. In the first nine months of 2024, Qatar exported 60.1 million tons, slightly up from 60 million tons in the same period in 2023, ranking second after the US.
Ranked third, with 59.3 million tons exported in the first nine months of 2024, showing a 1.2% year-on-year increase.
Russia ranked 4th, with 24.7 million tons exported, marking a significant year-on-year growth of 10.2%.
The United Arab Emirates (UAE) exports were 4.3 million tons over the first nine months of 2024, a 13% year-on-year increase, with most shipments headed to Asian markets, particularly India, Japan, China, and South Korea.
Egypt's LNG exports saw a sharp 87% year-on-year decline in the second quarter, amounting to just 0.1 million tons, due to rising domestic demand and the lack of surplus production for export. The total exports in the first nine months of 2024 reached 0.5 million tons, down from 2.8 million tons in 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 100.1 million 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 in Q1 to $10 in Q2, then to $11.45 in Q3, influenced by supply cuts due to Norwegian 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 per million BTU in Q2, with a modest rebound to $2.11 in Q3.
Hydrogen Developments
The global trend toward investing in hydrogen and incorporating it into national energy strategies has become evident, as the number of countries with national hydrogen plans rose to 58 by the end of September 2024.
Arab countries are rapidly advancing in the global hydrogen sector, seeking to solidify their positions as key players in the clean energy market.
The UAE leads these efforts, with Abu Dhabi’s Department of Economic Development signing a strategic agreement in June 2024 with a hydrogen solutions company to establish the first industrial complex for manufacturing hydrogen equipment and devices. This project, with investments totaling 1 billion dirhams, aligns with the UAE's vision to rank among the world's top 10 hydrogen producers by 2031 and enhance its leadership in sustainable energy.
In Algeria, Sonatrach signed a memorandum of understanding in July with three European companies, including Italy’s Snam, to conduct feasibility studies for exporting hydrogen via the Southern Hydrogen Corridor. This proposed pipeline, stretching 3,300 kilometers, aims to transport hydrogen from North Africa to European demand centers in Italy, Austria, and Germany. Supported by European gas network operators, the project targets transporting 4 million tons of hydrogen annually by 2030, utilizing around 65% of existing oil and gas infrastructure.
Tunisia has signed eight memorandums of understanding for new hydrogen production projects under its national hydrogen strategy. These include an agreement with a Saudi company to produce 600,000 tons of green hydrogen annually using 12 GW of renewable energy, targeting exports to Europe via the Southern Hydrogen Corridor. The project will be executed in three phases, starting with 4 GW of renewable energy capacity and 2 GW of electrolyzer capacity, producing 200,000 tons of green hydrogen annually. The total investment for the project is estimated at $6.4 billion.
Kuwait awarded a consulting contract to KBR in August 2024 to develop a master plan for 17 GW of renewable energy and 25 GW of green hydrogen production by 2050. The renewable energy plants will support domestic industrial hydrogen use and exports, with the plan set to be completed within 18
Egypt signed three new agreements in June 2024 for hydrogen and green ammonia projects, with total investments nearing $40 billion, bringing the number of announced projects in the country to 36, according to OAPEC updates.
Morocco’s Mohammed VI Polytechnic University signed a memorandum of understanding to develop innovative hydrogen storage solutions for transportation, leveraging its research center's expertise in collaboration with leading industry practices.
In June 2024, Jordan’s Ministry of Energy signed 12 memorandums of understanding to explore green hydrogen production, along with a framework agreement with an investor. The total number of proposed projects in the country has reached 13, all focused on green hydrogen production.