Editorial Comment

Australia and Middle Eastern countries, which have been net LNG exporters, are now foraying into LNG imports due to supply issues. We expect the two regions to increase their gas imports over the next decade, despite both being large reserve holders. Middle Eastern countries collectively hold more than 40% of global gas reserves. LNG imports into the region more than doubled between 2014 and 2016, and could nearly double again by 2020. The Middle East has sufficient regasification capacity at FSRUs to meet these imports; whereas Australia must fast-track regas facilities to import foreign supplies, due to recent gas supply shortages in Australia’s southern states. Piping gas from gas-rich