Liquefied natural gas (LNG) met almost 11 percent of global energy demand last year and trade in LNG reached a record 316.5 million tonnes, helped by increased supply from Australia, the U.S. and Russia, and growing demand from 37 countries. This picture of buoyant demand and supply is set to continue and even accelerate in coming years.
The latest Wood Mackenzie “Global Gas Markets long-term Outlook 2018: LNG Supply” authored by Giles Farrer, expects that capital spending on LNG plants and upstream infrastructure will total more than $200 billion from 2019 to 2025, to be shared by Canada, Mozambique, Qatar and the U.S., which is scheduled to see a flood of shale gas development. Industry experts maintain that rising world demand for LNG will require the sanctioning of around 60 million tonnes of new gasification facilities by 2020 and a further 100-plus million tonnes between 2020 and 2025 to ensure that markets in such countries as China, India and Pakistan are adequately supplied. Wood Mackenzie global LNG supply research director Giles Farrer said, “The LNG boom is back”.
There is already a pipeline of new LNG export capacity projects planned or under development outside the US including the sanctioning of about 30.9 million tonnes of LNG capacity in Australia’s Papua New Guinea at a cost of $39.5 billion according to Rystad Energy analyst Readul Islam.