New Global LNG Market Short and Long Term Outlook by LNGreports20 Jan 2012 • by Natalie Aster
LNG Reports new report expects the current supply glut to end in 2014. Further, the report expects global demand- supply balance to stand at 75 million tonnes in 2020. The report also states that the recent Japanese nuclear outage and nuclear phase out by European markets will drive the LNG demand in the short term.
The current surplus supply capacity will end in 2014 according to LNGReports. Driven by Japan, the UK, China, France and South Korea, the global LNG demand increased to 248.5 million tonnes in 2011.
On the other hand, low demand estimates coupled with lack of investment and skilled labor are delaying supply projects globally. In particular, most of the African and Australasian projects have been delayed by one to two years. Overall, LNGReports expects the demand to exceed supply by 75 million tonnes in 2014.
According to the report “Global LNG Market Short and Long Term Outlook – Trends, Drivers and Forecasts of Supply, Demand, Capacity, Trade and Contracts to 2020” by LNGreports, the company expects the global natural gas demand to increase to 4.2 Tcm in 2020, which will drive the scope of LNG industry. Accordingly, 17 new markets will enter the global LNG trade by 2020.
Global LNG Market Short and Long Term Outlook – Trends, Drivers and Forecasts of Supply, Demand, Capacity, Trade and Contracts to 2020
Published: December 2011
Price: US$ 6.000,00
China is also investing heavily in overseas exploration and production projects. Further, the country’s domestic production is also expected to rise significantly. Added to this, access to trans-national import pipelines is also threatening the aggressive forecasts of the LNG industry. However, despite the threatening factors, most companies are continuing with their project realization programs, which will result in high LNG demand growth by 2020.
Prevailing uncertainty over European economies is likely to hinder the gas demand in the region. Uncertainty over when and how the recovery will happen coupled with maturity in industrial sector will impact the gas demand growth. Currently, power sector is the major consumer of the clean fuel. However, markets like the UK will drive the demand for the region LNG imports. Further, expensive Russian piped gas over spot LNG prices will provide a fillip to the region’s demand. On average Russian gas was over $2- $3 per MMBtu more than LNG spot. In addition, foray of new markets including Ireland, Croatia and Poland into the industry will also drive the industry growth in the long term.
More information can be found in the report “Global LNG Market Short and Long Term Outlook – Trends, Drivers and Forecasts of Supply, Demand, Capacity, Trade and Contracts to 2020” by LNGreports.
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