Al-Loughani added in remarks to the Kuwait News Agency (KUNA) on the occasion of the AEO’s release of its Q1 2025 report on LNG and hydrogen developments that the report highlights key trends in the global LNG sector and the investment outlook for planned projects, in light of the latest international and Arab developments regarding hydrogen’s role in the energy transition.

He explained that gas prices in European and Asian markets saw significant gains in Q1 2025 due to growing concerns over the repercussions of halted Russian gas transit via Ukraine following the expiration of the Russia-Ukraine transit agreement, coupled with cold weather waves that swept across several European countries, boosting heating demand.

The AEO forecasts a 3.3% increase in global LNG supply in 2025 compared to 2024 levels, reaching around 425 million tons. Despite this expected rise, global demand is projected to absorb the additional supply, keeping prices elevated compared to the previous year, driven by geopolitical factors and intensifying competition between European and Asian markets to secure LNG shipments.

Regarding hydrogen, Al-Loughani noted that around 65 countries have officially expressed interest in investing in the hydrogen sector, according to AEO monitoring. These nations collectively represent 85% of global GDP and contribute roughly 80% of global CO₂ emissions, underscoring the critical importance of hydrogen in the global shift toward clean energy.

He said that six Arab countries had prepared and announced their national hydrogen strategies by the end of last March, reflecting rapid progress in policy development and the commitment of Arab states to establishing the necessary regulatory frameworks for entering the global hydrogen market.

Al-Loughani emphasized that the hydrogen industry is still in its early developmental stages and will require years of effort and coordination to form a mature and stable global market. While the ambitious goals set by some Arab nations remain achievable, their realization depends on several factors, including sufficient global demand for low-carbon hydrogen, significant cost reductions driven by technological advancements, and the development of large-scale infrastructure for transport, storage, and distribution.

He stressed that enhancing regional and international cooperation in technology transfer and knowledge sharing will be pivotal in accelerating development and mitigating risks associated with investing in this emerging sector.