Middle East LNG finds power in pragmatism

Producers in the region have adapted to disruption and design innovation — such as the use of solar energy for liquefaction — but are resistant to floating developments. The dominant narrative is not one of novelty, but of LNG strategies grounded in pragmatism.

In contrast to the global proliferation of FLNG and FSRU deployments, the Middle East remains committed to land-based infrastructure and long-term planning. LNG developments in Qatar, Oman and the UAE reflect a preference for high-volume, shore-based systems aligned with state-led investment cycles, integrated logistics and commercial continuity.

The Marsa LNG project in Oman exemplifies this approach. A fully electrified 1 million tonnes per annum (mta) train, developed by TotalEnergies and OQEP, will operate within existing port infrastructure at Qalhat. Meanwhile, QatarEnergy continues expanding Ras Laffan operations with a focus on logistics reliability and structured export growth. Recent agreements include 1.8 mta supply to Singapore and, reportedly, a likely contract with Kuwait via Al Zour.

This is not infrastructural conservatism. As the International Gas Union’s 2025 World LNG Report notes, floating infrastructure offers speed and flexibility, but typically compromises scale, ownership and sovereign control. Gulf state decisions to stay onshore reflect a deliberate alignment with national objectives: to keep LNG value chains within borders, limit third-party exposure, and avoid operational risks in a region vulnerable to drone attacks, cyber interference and maritime chokepoints.

“The region’s LNG strategy is rooted in stability, not speed”

Legal and geopolitical uncertainty reinforces this preference. Watson Farley & Williams has warned that standard war risk clauses may not cover acts by quasi-state actors such as the Houthis, and that a claim for frustration of charterparty may fail even if routing is obstructed. In this context, the region’s preference for long-term, fixed contracts and stable delivery points looks increasingly like a risk mitigation strategy.

This does not imply inertia. LNG fleet dynamics in the region reveal adaptation, with younger tonnage scrapped due to falling charter rates and selected newbuilds entering the orderbook. But the region remains conspicuously absent from floating LNG: no Middle Eastern country was among the eight floating regasification terminals commissioned in 2024, or the 13 currently under construction.

As FLNG and FSRUs evolve to include multi-use applications — regasification, bunkering and power generation — Middle Eastern planners may yet consider modular floating systems for marginal fields, synthetic LNG distribution or seasonal demand balancing. But for now, these remain secondary to core strategic priorities.

In a sector crowded with talk of transformation, the Middle East is doubling down on reliability. With 700 billion cubic metres of natural gas forecast for 2025 and competitive breakeven prices, the case for long-life, state-supported infrastructure remains strong.

In an industry that often chases the new, the Middle East is staying the course. Its LNG strategy is not driven by speed or fashion, but by scale, stability and control — and for now, that approach appears to be working.