Reuters are reporting that LNG finished 2017 in stunning fashion as a crackdown on pollution in China, the world’s second largest economy, boosts demand for cleaner fossil fuels and raw materials vital to clean-tech industries.
The world’s most traded commodity, oil, rallied to finish the year at levels not seen in more than two years on increased demand and efforts by major producers to cut supply.
For 2018, analysts predict more of the same: accelerating growth in major economies and increased infrastructure spending driving prices for industrial commodities and energy sources above current multi-year highs.
LNG went from loser to winner, in part due to seasonal factors.
Asian spot prices for LNG have doubled since June, to the highest level since late 2014 of more than US$11 per million British thermal units.
Until the last quarter of the year, LNG had been one of 2017’s worst-performing commodities.
The late rally has been driven by a huge gasification program in China which this year alone moved millions of households and industry from coal to gas for heating, just as a winter bites.
China’s gasification is aimed at reducing coal use to help address pollution that has plagued cities for years.
China is making huge investments into renewable power generation.
Read the article online at: https://www.lngindustry.com/liquefaction/02012018/chinas-war-on-smog-lifts-lng-to-multi-year-peaks/