Demand for Liquefied Natural Gas (LNG) in some countries with the Middle East and North Africa region has been on rising demand making setting a high task for suppliers. Over the past decade, demand for LNG in Egypt, and Dubai, Jordan, Kuwait, and Pakistan has risen significantly reaching a current demand of 20.8 million tonnes per annum in 2016. Egypt’s demand has been very crucial leading the country to set up a scheme which awards huge tenders for short-term and medium-term supplies – attracting imports to handle demand deficits. The once known oil economies and exporters now importing liquefied natural gas. According to Platt, this is very bad and allows new entrants in the region to use short-term purchasing strategies, which is creating additional liquidity.
In view of this, S&P Global Inc’s Platts – which is a commodity pricing agency, will commence assessment of LNG which is being imported to the Middle East and Pakistan. According to the Global Director of LNG at Platt, their price assessment will help show the increasing necessity of the Middle East region as an import destination of LNG. Currently, Egypt increases its purchases after buying 60 cargoes of the fuel through a tender last November while anticipating to acquire additional 40 cargoes this year. The Platts price maker assessment is expected to be exercised through the application of a freight cost factor while the main point for the exercise will be Egypt’s Ain Sukhna port.