Middle East LNG terminals gain ground on rivals

Rystad Energy forecasts that the Middle East will overtake Asia in natural gas production in 2025, becoming the world’s second largest producing region behind North America. This change is being driven by rising output, low breakeven prices, and growing LNG export and import activity across the region.

According to Rystad Energy, gas production in the Middle East will reach 700 billion cubic metres (bcm) in 2025, outpacing Asia’s expected 620 bcm. “Breakeven gas prices in the Middle East are estimated to be around US$1 to US$2 per million British thermal units (MMBtu), lower than in other regions,” Rystad Energy noted.

LNG exports from the Middle East are increasingly diverse with major LNG flows from the region to North West Europe, the Mediterranean, East Asia and South Asia. These routes reflect not only the competitive pricing of Middle Eastern LNG, but also the expanding terminal capacity that supports its movement and delivery, with Qatar expected to reach contracted LNG exports of around 50M tonnes per annum (mtpa).

One of the newest examples of floating LNG infrastructure is located in Aqaba, Jordan, where the FSRU Energos Eskimo recently secured a 10-year charter with the Egyptian Natural Gas Holding Company (EGAS). The vessel is one of two operated by Energos for the Aqaba LNG Terminal, the other being Energos Freeze. According to Energos, the agreement with EGAS marks a continuation of LNG deliveries through Aqaba, which acts as a regional receiving and regasification hub. No further commercial details of the charter were disclosed in the announcement.

In Oman, construction is under way at the Marsa LNG facility in Qalhat, following a ground-breaking ceremony in May 2025, hosted by TotalEnergies EP Oman Development and OQ Exploration & Production (OQEP). The project will utilise Oman’s existing LNG infrastructure at Qalhat and include a new one million tonnes per annum LNG train.

The ceremony was attended by the Omani Minister of Energy and Minerals and the French Ambassador to Oman with the event billed as a “major milestone for the energy sector in Oman”. The new train is expected to help meet LNG demand in both Asia and Europe, with the location allowing for flexible routing. Marsa LNG is a joint venture between TotalEnergies (80%) and OQEP (20%).

In Qatar, operations at the Qatargas 2 LNG terminal in Ras Laffan continue to demonstrate high safety and logistical performance. QatarEnergy LNG and Milaha recently celebrated three years of operations at the Ras Laffan Logistics Shorebase without a lost-time incident. In a joint statement, the companies noted that the shore base had supported more than 8,000 truck movements and over 1,300 vessel calls during the period.

QatarEnergy LNG said the milestone “underscores the successful partnership with Milaha in delivering world-class logistics support.” The shore base includes a heavy haul jetty, pipe and container yards, warehousing and an offshore supply base. The partners indicated that safety, reliability and environmental standards would remain core priorities.

Kuwait’s Al Zour LNG import terminal has become a point of interest in recent LNG trade developments. QatarEnergy recently signed a long-term LNG supply agreement with a “long-standing partner in the Middle East” to deliver up to 1.8 mtpa of LNG over 15 years starting in 2025. While the partner was not named, the announcement highlighted Al Zour as the likely point of delivery, given its capacity and geographic position.

QatarEnergy chief executive Saad Sherida Al-Kaabi said: “This agreement further demonstrates our continued commitment to support our partners in meeting their energy requirements.” He added that it would also reinforce QatarEnergy’s global LNG supply position.

Meanwhile, development of Qatar’s massive North Field expansion project continues to shape the region’s LNG landscape. QatarEnergy has signed a supply agreement with Santos for a small-to-mid-term delivery of 1.8 mtpa of LNG from its North Field East and North Field South projects. Under the agreement, LNG will be delivered to the Singapore regasification terminal over a period of three years, starting in 2028.

QatarEnergy Trading stated that this contract “reinforces the company’s commitment to delivering reliable energy supplies” and is part of its broader global LNG trading strategy.

In a related announcement, QatarEnergy Trading also confirmed plans to increase its non-Qatari LNG trading volumes by a factor of three to four by 2030. The trading arm aims to expand its global footprint beyond equity cargoes, capitalising on scale, flexibility and trading reach.

According to the company: “Our LNG trading arm will play a pivotal role in securing reliable LNG supplies for global markets, leveraging our growing global LNG portfolio.” The strategy reflects both market ambition and structural support from QatarEnergy’s expanding export infrastructure.

Across the Middle East, a common thread among new LNG terminal developments is alignment with flexible supply strategies, increasingly diversified export destinations, and integrated regional and global logistics. The Rystad analysis suggests that these dynamics will continue to reposition the Middle East as a more central player in LNG flows, especially as its production economics remain competitive.

With ongoing investments in regasification, liquefaction, floating storage and logistics, the region appears set to maintain and expand its presence in global LNG trade, increasingly serving as a conduit between upstream production and downstream demand in multiple markets.