Arab Petroleum Investments Corp. (APICORP) said that investments in natural gas projects in the MENA (Middle East and North Africa) region would continue to grow despite weaker demand caused by the coronavirus pandemic. Around $211-billion investments are required to finance gas projects planned or under development in MENA from 2020 to 2024, APICORP said. The multilateral lender previously forecast that those projects required a total $185 billion between 2019 and 2023.
Production expansion in Qatar, the world’s biggest LNG exporter, will make up $22 billion of planned investment, APICORP said. Saudi Arabia and Iran will likely see the most activity, with nearly $90 billion of planned and committed investments for projects in the two countries by 2024. State-owned firms contribute to roughly 92% of the region’s natural gas investments, APICORP added.
Middle Eastern countries are pushing new gas projects while reducing investment in the oil sector, although the pandemic has depressed prices for both fuels. Governments in these countries are promoting the shift from crude to gas to generate electricity in a bid to cut carbon footprint. Over the next two or three years, MENA countries will enter a fiercer competition to secure LNG buyers
