New Saudi and Emirati gas finds boost export hopes

Significance

Further exploration and appraisal work will be needed to gauge how much gas can be recovered from the new discoveries and at what cost. The global demand slump following COVID-19 lockdowns is raising cost-effectiveness questions over the multiplicity of new global LNG projects, not least in neighbouring Qatar. Nevertheless, Middle East producers are well positioned to challenge US and Russian LNG in Asian and European markets.

Impacts

• Middle Eastern LNG imports will decline further, and plans for new regasification capacity are likely to be shelved.
• Dubai’s reduced dependence on the Dolphin gas import pipeline could affect relations with Qatar and fellow-customer Muscat.
• Riyadh’s development of the Jafurah gas and condensate field will provide feedstock for its growing petrochemicals industry.