Qatargas has shared its views on the global LNG market at the Monthly Gas Lecture organised by the Gas Exporting Countries Forum (GECF) at the GECF Secretariat headquarters in Doha.
Qatargas’ Chief Executive Officer, Khalid Bin Khalifa Al Thani, spoke on the supply and demand in key LNG markets in Latin America, Europe and Asia. The number of LNG importing countries in Latin America has doubled from three in 2007 to six in 2013 and is expected to reach nine by 2016.
LNG in Latin America
Khalid Bin Khalifa Al Thani said: “Even though the gas demand forecast in Latin America is relatively high, long-term volumes of LNG will have to compete with domestic and piped gas. Additionally, these markets will most likely be supplied by North American LNG volumes from upcoming new regional projects.”
European LNG demand
LNG demand in Europe has been reduced by the recession, Asia’s strong pull on flexible cargoes, cheap US coal imports and government subsidised renewable energy sources. However, Sheikh Khalid expressed his optimism regarding the resurgence of Europe’s LNG demand as its economy strengthens. He said: “Europe’s long-term LNG demand will rebound as its economy improves; indigenous gas declines; supply source diversity becomes critical and gas is required to support intermittent renewable energy needed to meet environmental targets. We believe deliveries will approach 100 million tpa by 2025.”
Biggest LNG market to grow
LNG demand in the Asia Pacific region, the world’s biggest LNG market, has almost doubled since 2005 and is expected to reach 320 million tpa by 2025. Although China and India will experience strong LNG demand, the major area of LNG growth will come from South East Asia, a region that had not imported LNG until just three years ago.
Global LNG demand
Qatargas expects global LNG demand to double in ten years’ time, with 400 million tpa of proposed additional volumes to come online by 2025. However, a significant portion of these new projects will be delayed or cancelled due to the various challenges involved in bringing new supply on-stream. Even if an optimistic view is taken on the number of LNG projects that will go to completion, the LNG market will continue to be tight in the short and medium term as demand growth outpaces supply.
Khalid Bin Khalifa Al Thani concluded: “Global LNG demand will continue to grow robustly, especially in Asia. The LNG market will remain tight at least until the end of this decade. In order to secure LNG, customers need to attract LNG, or risk facing a choice between higher pollution and lower security of supply. In this environment Qatargas continues to be a critical source of reliable LNG as demonstrated by our exemplary delivery and safety record and underpinned by our strong resource base; sound partnerships with international oil companies and solid support from the State of Qatar.”
Adapted from press release by Callum O'Reilly
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