The dynamics in the global LNG market are set to shift over the next decade, with demand set to double in this timeframe and a tight market to remain until 2020.
That’s according to Qatargas CEO Khalid Bin Khalifa Al Thani, who presented Qatargas’ views on the global LNG market fundamentals at the recent Monthly Gas Lecture in Doha organised by the Gas Exporting Countries Forum (GECF),
Qatar delivers LNG to 26 out of a total of 29 LNG importing countries, accounting for 33% of the world’s LNG supply. The bulk of these supplies are to Asia, which holds 75% of total LNG demand.
But the fundamentals in the global LNG business are evolving, and this will inevitably change the supply-demand equation in the future. The number of LNG importing countries in Latin America has doubled since 2007 (six in 2013) and is expected to grow to nine by 2016, while Sheikh Khalid is optimistic about a resurgence of demand in Europe as the economic picture improves. The Qatargas CEO projects deliveries approaching 100 million tonnes per annum (MTPA) by 2025.
“Global LNG demand will continue to grow robustly, especially in Asia. The LNG market will remain tight at least until the end of this decade…”
At the same time, LNG demand in the Asia-Pacific region will continue to grow, expected to reach 320 MTPA by 2025 and largely led by strong growth in South East Asia – only an LNG importer in the last three years.
All of which will create the backdrop of a tight market in the short to medium term, according to Sheikh Khalid, with a number of new projects cancelled or delayed due to the inherent nature of bringing new supply on-stream. He explained in his address, “Global LNG demand will continue to grow robustly, especially in Asia. The LNG market will remain tight at least until the end of this decade.”
“In order to secure LNG, customers need to attract LNG, or risk facing a choice between higher pollution and lower security of supply…”
Asia-Pacific Industrial Gas Conference 2014
The Asia-Pacific region is attracting increased investment interests across all segments of its energy value chain, particularly in the industrial gas sector.
Held at the Pan Pacific Hotel in Singapore this November, the Asia-Pacific Industrial Gas Conference 2014 will tackle the trends, technologies, challenges and opportunities in this emerging region – including the bustling LNG business of both today and tomorrow.
For more information contact:
firstname.lastname@example.org / +44 1872 225031