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Middle East Gas Power Capacity Set to Hit 530 GW by 2035

Middle East Gas Power Capacity Set to Hit 530 GW by 2035

Post by : Shweta

Middle East Gas Power Boom Could Reach 530 GW by 2035

Rising Electricity Demand Drives New Gas-Turbine Expansion

The Middle East is emerging as one of the world's major growth markets for gas-fired electricity generation, with regional capacity projected to increase from 385 gigawatts in 2025 to 530 GW by 2035, according to new data from S&P Global Energy CERA. The expected expansion is being driven by population growth, industrial development, fuel switching and rapidly rising electricity demand.

Gas Expected to Support Growing Power Needs

The expansion comes as countries across the Middle East seek reliable electricity capacity while also increasing renewable-energy generation. The International Energy Agency estimates that gas-fired capacity across the Middle East and North Africa could increase by more than 110 GW over the next decade from around 350 GW operating in 2024.

Natural gas is also expected to provide roughly half of the region's electricity-demand growth through 2035. This makes gas-fired plants an important source of flexible generation while countries continue developing solar and other renewable-energy projects.

Saudi Arabia Emerges as a Major Gas Power Market

Saudi Arabia is at the centre of the regional transformation. Its Liquids Displacement Program is encouraging the replacement of oil-fired electricity generation with domestic natural gas. The strategy is designed to make gas a preferred source for flexible power generation while reducing the use of liquid fuels.

Large competitive procurement programmes are also accelerating new power projects. Saudi Arabia has largely favoured combined-cycle gas turbines, while Oman and Qatar are investing in open-cycle turbines to provide additional flexibility and maintain grid reliability.

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Middle East Could Shape the Next Global Gas Cycle

S&P Global Energy CERA said the Middle East could define the next major growth cycle for the gas-turbine industry. While North America is currently leading global gas-turbine demand, the Middle East could become an increasingly important market as the current US-led expansion matures.

Global gas-turbine orders exceeded 100 GW in 2025, making it the second-strongest year on record, according to S&P Global Energy data and McCoy Power Reports. Growing electricity demand from data centres, industrial electrification, population growth and renewable-energy development is increasing the need for dependable power generation.

North America Leads Current Expansion

North America remains the leading region during the current growth cycle. S&P Global Energy CERA expects an approximately 85 GW gas-fired project pipeline in North America to reach commercial operation through 2030.

Global new gas-fired capacity additions are expected to reach a peak of around 96 GW in 2030, largely driven by US demand. After that, Asia, the Middle East and Africa are expected to account for most new capacity additions, with annual additions projected to stabilise at around 60 GW through the middle of the century.

Turbine Manufacturers Increase Production

The surge in demand is encouraging turbine manufacturers to increase production. Manufacturers are expanding factories, developing highly efficient H- and J-class turbines and showing greater interest in power plants that can be deployed quickly.

S&P Global Energy CERA estimates that manufacturers' expansion plans could increase annual turbine production capacity by around 30 percent by 2030, potentially helping to ease current supply constraints.

Permits and Costs Remain Major Challenges

Despite the positive outlook, the industry faces significant obstacles. Slow permitting and grid-interconnection processes are delaying projects in several markets, while higher demand has pushed the cost of new gas-fired power plants above previous levels.

There is also uncertainty around future US electricity demand because rapid data-centre development is facing growing opposition in some local and state communities. These challenges could affect the timing of new projects even as global demand for reliable electricity continues to increase.

Aug. 25, 2026 3:09 p.m. 527
Global News GCC News Gulf News

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