Energy consultants Wood Mackenzie’s latest research reveals that uncontracted demand, by the world’s seven largest LNG buyers, could quadruple from 20 million metric tons today to 80 by 2030. Buyers of LNG based in north-east Asia including Japan, China, South Korea, India and Taiwan account for more than 50 percent of today’s global LNG market of 308 million metric tons. However, by 2030, global LNG demand will reach 450 million metric tons forecasts Bloomberg NEF. This projected increase of contracted and uncontracted demand from Asian buyers is very good news for both traditional LNG exporters such as Qatar and Australia, the newcomers in the U.S. Gulf of Mexico and Russia’s Yamal as well as upcoming Mozambique.
LNG is going to be the chief beneficiary of the climate agenda, to contain the global rise in temperature to below 2 degrees Centigrade, economic development in emerging economies and parallel action against visible and destructive air pollution, most notably in China. As Nicholas Brown, Wood Mackenzie research director, has stated, “as China pushes on toward a lower-emission economy, its demand for gas and LNG has grown significantly and we expect the trend to continue in the longer term.”
It is not only the world’s leading purchasers of LNG in Asia that are looking for new supplies of this cleaner energy resource but also buyers from other parts of the world, most notably Europe including Italy’s Enel, Britain’s Centrica and France’s EDF. This is especially the case as legacy LNG supply contracts of 20 years will expire soon, prompting the need to secure new supplies. It is likely that these new purchases will be both contract and spot market based, with an eye for low average costs and good security of supply. To read more https://www.rigzone.com/news/major_lng_buyers_uncontracted_demand_to_quadruple_by_2030-21-jan-2019-157961-article/