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IGU releases 2018 World LNG Report

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LNG Industry,


The International Gas Union (IGU) has released its 2018 World LNG Report at the World Gas Conference in Washington D.C., examining the current state of the Global LNG Industry. The latest report shows 2017 as another record-breaking year for LNG trade and reinforces the global LNG industry’s role in expanding access to natural gas, an energy resource that leads to a more sustainable and prosperous future.

After steady growth in recent years, global LNG trade in 2017 reached 293.1 million t – an increase of 12% (35.2 million t) from 2016, the third consecutive record-breaking year for the industry and the highest annual growth since 2010. 88.3 million t of this trade was non-long-term, a 16 million t increase on 2016, and comprising a significant 30% of total LNG trade.

This significant growth can largely be attributed to increases in new LNG supply, driven primarily by projects in Australia and the US bringing new capacity online. With additional trains at Australia Pacific LNG, Gorgon LNG, and higher production from existing trains, Australia added 11.9 million t of production in 2017. US production gains of 10.2 million t were driven entirely by Sabine Pass LNG, which added two new trains in 2017. Qatar remains the world’s leading exporter of LNG, with 2017 liquefaction reaching 81 million t. In 2017, unlike 2016, increases in world trade occurred without new major entrants to the global LNG market.

Increasing demand in 2017 also contributed to strong growth in global LNG trade, as LNG establishes itself as the fuel of choice in markets across the world. The Asia-Pacific region continued to be a core driver in global demand, with China alone adding 12.7 million t of imports in 2017 – the largest ever annual growth by a single country. This growth can be attributed to the strong enforcement of coal-to-gas switching policies through China, as policymakers aim to improve urban air quality across the country. Other countries driving global LNG growth include South Korea, Pakistan and Turkey, which together added a combined total of 11.9 million t in imports.

 

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As of March 2018, global nominal liquefaction capacity reached 369 million tpy, with 32.2 million tpy of liquefaction capacity added between January 2017 and March 2018. As part of this, the first FLNG project came online in Malaysia, with additional FLNG projects set to come online in 2018 and beyond. This growth is expected to continue, with 92 million tpy of liquefaction capacity under construction as of March 2018, and a further 875.5 million tpy of proposed capacity in the pipeline.

Global regasification capacity continued to increase, rising to 851 million tpy by March 2018, out-pacing increases in liquefaction capacity. A total of 45 million tpy of regasification capacity was added during 2017, most of it in January, as terminals that had been completed during 2016 began commercial operations at the start of the year. The key additions made during the second half of 2017 were all in Asia, including Pakistan, Thailand, and Malaysia.

David Carroll, President of the IGU, said: “This year’s report is a testament to the importance of LNG as a core element in meeting the world’s energy needs, with international trade continuing to boom from both a supply and a demand perspective. We remain bullish and continue our strong support of LNG as a core driver of a sustainable future.”

Read the article online at: https://www.lngindustry.com/floating-lng/29062018/igu-releases-2018-world-lng-report/

 

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