Arab countries gas exports increase 2.7 percent in third quarter – OAPEC

Arab countries natural gas exports increased about 26.5 million tons during the third quarter of this year, an increase of 0.7 million tons over the second quarter, a growth rate of 2.7 percent, said the General Secretariat of the Organization of Arab Petroleum Exporting Countries (OAPEC) Thursday.

In a report, OAPEC noted that during the third quarter of 2020 the Arab countries collectively strengthened their market share in the global market, reaching about 31.6 percent, compared to 30.1 percent during the second quarter and 28.5 percent during the first quarter.

The report attributed this increase to the nature of contracts based on long-term contracts between national companies in the Arab countries and their customers in the European and Asian markets, as Arab countries are the main long-term approved supplier for major consumers in various markets and the most reliable among all exporting countries.

It also shed light on the most prominent developments and changes in the LNG industry during the third quarter under study by reviewing the dynamics of markets and the development of LNG supplies from Arab countries and the investment position in new projects in light of the continuous follow-up of the repercussions of Covid-19 pandemic on the sector.

The recovery in gas prices is due to the recovery of demand in several major consumer markets, especially the United States, China, India and Europe, driven by the growth of demand in the electricity sector due to hot weather conditions, it added.

Furthermore, the report indicated that the global market was able to absorb the supply of liquefied natural gas during the first quarter of this year, as total exports amounted to about 96 million tons, which is higher than the total exports of the same quarter of last year by 10.5 percent, as it reached then about 86.9 million tons.

It also pointed out that the global market’s ability to absorb the surplus global supplies began to shrink during the second quarter, and then exports declined to 85.8 million tons, down about 10.2 million tons from the first quarter, a decline of 10.6 percent.

The report said that the Coronavirus pandemic has greatly affected the budgets of international oil and gas companies, as many companies announced to reduce their capital and operating budgets for the year 2020 from what was planned.

Source: Kuwait News Agency