Qatar could benefit from global LNG demand growth
The global demand for liquefied natural gas (LNG) is set to rise by 4 to 5% a year between 2015 and 2030, according to director at Shell
Liquefied natural gas demand is set to rise, expert assures.
2016 saw the worldwide demand for (LNG) soar to 265 million tonnes (MT) – which is ample to power around 500 million homes a year.
This included an increase in net LNG imports of 17 MT, The Peninsula reported.
While many projected that a strong increase in supply would outpace demand growth during 2016, in reality, the demand growth kept pace with supply.
According to Shell’s first LNG Outlook, this came from a greater than expected demand in Asia, while the Middle East absorbed the increased supply from Australia.
Maarten Wetselaar, Integrated Gas and New Energies Director at Shell said: “Global LNG trade demonstrated its flexibility time and again in 2016, responding to shortfalls in national and regional gas supply and to new emerging demand.”
He added: “The outlook for LNG demand is set to grow at twice the rate of gas demand, at 4 to 5% a year between 2015 and 2030.”
Two of the fastest growing buyers, China and India, are set to continue driving demand increase – swelling their imports by a combined 11.9 MT of LNG in 2016, boosting China’s LNG imports in 2016 to 27 MT and India’s to 20 MT.
Since 2015, six additional importing countries increased the total global LNG demand, namely Colombia, Egypt, Jamaica, Jordan, Pakistan and Poland, bringing the number of LNG importers to 35, up from around 10 at the start of this century.
In 2016, Egypt, Jordan and Pakistan were among the fastest growing LNG importers in the world owing to local shortages in gas supplies, importing a total of 13.9 MT of LNG.
The bulk of growth in LNG exports in 2016 came from Australia, where exports increased by 15 MT to a total of 44.3 MT.
In the USA, 2.9 MT of LNG was delivered from the Sabine Pass terminal in Louisiana.
A number of influences are expected to impact LNG prices, including oil prices, global LNG supply and demand dynamics and the costs of new LNG facilities.
Also, the growth of LNG trade has grown into helping meet demand when the domestic gas markets face shortages.