KUWAIT: The Ministry of Oil on Sunday organized a virtual panel discussion titled “Key Developments in Liquefied Natural Gas and Hydrogen” in cooperation with the Arab Energy Organization, focusing on the latest global energy trends and the growing importance of alternative energy sources. Speaking during the session, Sheikha Tamadher Khaled Al-Ahmad Al-Jaber Al-Sabah, Director of Public Relations and Petroleum Media at the Ministry of Oil, said Kuwait is increasingly focusing on expanding the use of natural gas in electricity generation as part of a strategic approach to enhance energy efficiency, improve environmental performance, and optimize fuel consumption.
She highlighted major infrastructure projects implemented in recent years, most notably liquefied natural gas (LNG) import facilities in the Al-Zour area, describing them as a key pillar in supporting the country’s power and water generation requirements and strengthening the resilience and sustainability of Kuwait’s energy system. She added that the projects align with rising domestic demand for electricity and energy, while supporting the state’s efforts to develop a more efficient and sustainable energy mix in line with global transformations in the energy sector.
The ministry reaffirmed its commitment to promoting knowledge and expertise in the energy field and keeping pace with rapid international developments through the exchange of information and experiences among stakeholders. Sheikha Tamadher Al-Sabah noted that LNG and hydrogen have emerged as among the most significant strategic issues globally amid increasing efforts to diversify energy sources, strengthen supply security, and accelerate energy transition policies.
For his part, Wael Abdel-Moaty, a gas industry expert at the Arab Energy Organization, said the first quarter of 2026 witnessed major structural shifts in the global energy market due to disruptions in LNG shipments through the Strait of Hormuz. He said the industry also recorded unprecedented investment and contracting activity driven by growing international concern over supply security and energy diversification. Abdel-Moaty noted that the United States maintained its position as the world’s leading natural gas exporter, increasing its market share to around 29 percent by benefiting from disruptions affecting exports through the Strait of Hormuz.
He stressed the sensitivity of LNG trade to strategic maritime routes, noting that disruptions to navigation through the Strait affected nearly 19 percent of global LNG trade, underscoring the importance of maritime security in maintaining market stability. According to Abdel-Moaty, Arab countries’ LNG exports declined by more than 24 percent during the first quarter of 2026, reducing the region’s market share to below 20 percent compared with around 25 percent before recent geopolitical developments.
Addressing global demand trends, he said gas-importing countries adopted various measures to address supply fluctuations. Countries such as India prioritized vital gas-consuming sectors including residential use and transportation, while Japan and South Korea eased restrictions on alternative energy sources such as coal to reduce pressure on gas consumption. He added that the European Commission recommended managing stockpiling efforts cautiously to avoid additional price pressures.
Despite these measures, spot market LNG prices surged by more than 60 percent in March compared with February, reaching $18 per million British thermal units (MMBtu), Abdel-Moaty said. He added that the Arab Energy Organization expects global LNG supplies to reach approximately 435 million tons in 2026, representing growth of only 1 percent compared with earlier forecasts of 8 percent, amid concerns over supply shortages and risks to strategic shipping routes. On hydrogen, Abdel-Moaty said global political momentum continues to accelerate, with around 65 countries adopting national hydrogen strategies representing roughly 85 percent of the global economy and 80 percent of global carbon dioxide emissions.
He noted that operational capacities for low-carbon hydrogen rose to around 2.7 million tons annually in 2025, compared with approximately 2 million tons in 2024, with blue hydrogen accounting for the majority of current operational capacity. However, he said a substantial gap remains between announced plans and actual implementation, with projects currently under construction totaling only around 5.5 million tons annually compared with global ambitions exceeding 120 million tons annually. He said this reflects the sector’s transition from a phase of high optimism to a more realistic stage centered on economic feasibility and long-term contractual demand.
Abdel-Moaty also pointed to growing Arab investments in low-carbon hydrogen and ammonia projects, expressing expectations that next year could mark a significant shift toward hydrogen development in the Arab region through projects currently under construction and those planned to begin operations in 2027. The session was attended by representatives from the Ministry of Electricity, Water and Renewable Energy, the Environment Public Authority, the Arab Energy Organization, and students from Kuwait University’s College of Engineering and Petroleum. — KUNA
