January 21, 2019
Middle East greenfield investment surge seen in 2019 to meet gas demand
The global oil and gas industry’s investments in new projects are set to double in 2019, with Qatar, the UAE and Saudi Arabia fueling growth.
Rystad Energy forecasts that projects involving more than $240 billion in greenfield investments will be sanctioned in 2019, with almost 25% expected to come from the Middle East region.
“The industry in the Middle East is aiming to ramp up gas production in order to meet rising regional demand, while also increasing oil output,” Rystad Energy senior analyst Aditya Saraswat said.
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Middle East greenfield investments are seen at about $56 billion in 2019, more than six times the investments sanctioned in 2018. Investments in gas developments alone are expected to jump to $30 billion this year from around 1.7 billion in 2018.
“The growth is primarily driven by offshore gas developments in Qatar and the UAE, as well as oil developments in Saudi Arabia,” Saraswat added. “Notably, investments in gas developments are picking up significantly. Gas development projects in Qatar and the UAE account for almost a third of the resources expected to be sanctioned next year, while Saudi Arabia’s oil expansion projects at Berri, Marian and Zuluf account for more than half.”
** Qatar plans to boost its LNG capacity to 110 million tonnes per annum (million tpa) and solidify its position as the top LNG producer globally. Rystad Energy estimates this 12 billion boe project will require more than $35 billion in greenfield investments, making it one of the biggest projects to be approved in the region over the last decade.
** The UAE is prioritizing offshore gas projects to increase gas availability for domestic consumption and reduce its dependence on imported gas and LNG, looking to add 1.6 billion boe of resources. Rystad Energy expects these plans will require about $14.5 billion in greenfield investments.
** Saudi Arabia will develop around 9.8 billion boe of additional resources by investing just over $24.5 billion in greenfield projects at the Marjan, Berri and Zuluf oilfields.
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