LNG Imports on Rise in Middle East, Rosneft to Supply 10 LNG Cargoes to Egypt

Rosneft Trading, a unit of Russia’s Rosneft has signed an agreement with Egyptian Natural Gas Holding Co.(EGAS) to supply 10 LNG cargoes within a year, thereby driving the demand for LNG market globally.

Egypt: Egyptian Natural Gas Holding Company (EGAS) has set aside around USD2.2 billion for LNG imports in 2017.The company has entered into a contract with Rosneft Trading to supply 10 LNG cargoes in the year 2017. Rosneft Trading has already delivered 3 cargoes to EGAS in 2016. Under the new contract, the first LNG cargo will be delivered by May 2017. Last month it was reported that Egypt has already secured 100 LNG cargoes for delivery in 2017. Due to various factors, such as falling production, shortage of gas and increased domestic consumption, Egypt is now a net importer of natural gas.

TechSci Research finds out that the rise in natural gas demand from Middle East and Africa would further boost the demand of LNG across the globe. Growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favorable government policies is boosting demand for LNG across the globe. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.

According to released report of TechSci Research “Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years.