Lng market outlook pdf

Feb 20, 2020 the shell lng outlook, now in its fourth year, highlights key trends from 2019. The report demonstrates that 2018 was another strong year for lng by a range of metrics. Lng outlook and trends 5 9 lng fsrus 5 9 lng fpsos 6 0 fsrus and lng fpsos conversions versus new builts 6 0 conclusions 60 8. Lng bunkering market size for 2016 was valued over usd 800 million and the capacity is set to exceed 18,500 kilotons by 2024 get more details on this report request free sample pdf shifting trends towards clean energy coupled with stringent government regulations to minimize airborne emissions including sulfur and nitrous oxide will drive the global lng bunkering market size. Information, analytics and expertise on the full lng value chain our lng products and services deliver a 360degree view of the lng industry. Lng china coming back to the market for longterm contracts meanwhile, chinas lng demand continues to grow at a rate of around 40% per year, with gas strategies forecasting demand in 2018 to be approximately 53 mt. We forecast gas demand and then use our infrastructure and contract models to forecast supplyanddemand balances, corresponding gas flows, and. Lng carriers market growth, trends, and forecast 2020 2025 the market is segmented by containment type membrane type and moss type, propulsion type steam turbines, dualfuel diesel enginetrifuel diesel enginedfdetfde, slowspeed diesel ssd, mtype electronically controlled gas injection megi, xdftwostroke engine, steam reheat and stage and geography north america.

Lng outlook reports discover longterm and shortterm outlook reports on global gas market fundamentals, dynamics and disruptive trends. Lng satisfies the remainder of demand, imports have come from u. The outlook for lng in 2016 supply growth but where is the demand. It also brings gas strategies views of the lng market as it leaves behind a decade of extraordinary growth and continues to adapt to new market dynamics. Find short and longterm supply, demand and price forecasts for the lng market both globally and regionally as well as detailed information on lng assets, pricing and contracts. Perspectives on the development of lng market hubs in the. Exhibit 1 illustrates the market forces both leading to and resulting from the anticipated growth in u. Detailed market research and continuous tracking of market developmentsas well as deep, ontheground expertise across the globeinforms our outlook on global gas and liquefied. A comprehensive analysis of trends and developments in the lng market costs and economic viability of sslng stations.

Some key takeaways from the shell lng outlook 2020 global demand for liquefied natural gas grew by 12. Due to the large growth of the global lng market, in the mediumterm future, the trend is the global competition between russia, australia, the usa and qatar for which country will prevail with a larger market share in the global lng market. The internal gas market has been designed to facilitate the three main objectives of eu energy policies. Our lng forecasts include detailed analysis of the entire gas and liquefied natural gas value chain to provide a complete picture. With little change in middle east and americas lng consumption, europe will again need to absorb market length, setting the price floor for the global spot market. This publication brings together the insights of our consultants and clients into how the industry could evolve in 2020 and the decade beyond. Mariner east me 2 actual pipeline is scheduled for startup in 2q after much delay, while me 2x inservice date has been postponed from end2019. Asian lng consumers have historically relied on longterm contracts to. As per mopng, lng import terminal capacity to double to 47.

Natural gas will still be a major contributor to world energy supply in 2040 even in a scenario where policymakers act determinedly to implement the targets in the paris agreement on climate change and. Maritime trade lng liquid natural gas is a crucial link in. Energy information administration perspectives on the development of lng market hubs in the asia pacific region 2. Shell interpretation of ihs lng waterborne trade, liquefaction projects database and wood mackenzie q4 2016 data 265 100 150 200 250 300 350 400 2006 2008 2010 2012 2014 2016 2018 2020 delivered volume. Global demand for liquefied natural gas lng grew by 12. The global lng market is still on the up and up, growing 10% yearoveryear in volumes delivered. Lng outlook 2020 the global lng market will be very oversupplied in 2020 as rising us production meets limited demand growth in asia. This leads to an urgent need for chinese buyers to secure additional supplies. Global lng bunkering market outlook, trend and opportunity. Lng carriers market growth, trends, and forecasts 2020 2025. Lng carriers market growth, trends, and forecast 2020 2025. Smallscale lng market growth, trends, and forecast 2020.

Demand for liquefied natural gas lng in 2016 kept pace with a planned strong increase in new supplies. Lng at the crossroads identifying key drivers and questions. Begcee flower, lng supply outlook 2016 to 2030, page 5 petroleum negotiators, aipn, provides a master spa model contract. We expect our australian lng export price indicator to finish 2017 at around aud8gj. For the fifth consecutive year, global lng trade set. Lng shortterm trade and price outlook q1 2020 report.

We forecast gas demand and then use our infrastructure and contract models to forecast supplyanddemand balances, corresponding gas flows, and pricing implications to 2035. Flng market size for 2016 was valued over usd 10 billion and is set to exceed 300 mtpa by 2024 get more details on this report request free sample pdf increasing demand for clean fuel technologies along with rising focus toward sustainable. We compared market dynamics from 2018 with dynamics from the same period a year ago to identify the biggest importers and exporters and emerging trends to keep an eye on. Lng supply is set for strong growth in 2016 with ten liquefaction trains, some of which are delayed from 2015, expected to startup.

Over the course of 2018, we used lngflow, our lng fleet utilization and movement tracker to pinpoint the most major developments in the global lng market. Smallscale lng market growth, trends, and forecast. We expect lng demand to outpace overall gas demand as asian markets rely on more distant supplies, europe increases its gasimport dependence, and us producers seek overseas markets for their gas both pipe and lng. Lng market had little direct impact in china in 2019 due to trade issues and a 10% tariff that china had put on lng imports from the u. In total, imported lng volumes reached 317 mt in 2018, compared to 289 mt in 2017. Keep pace with liquefaction projects, lng importers and regasification. Liquefied natural gas developments and market impacts cftc. Lng at the crossroads identifying key drivers and questions for an industry in flux 1 the volume of liquefied natural gas lng traded globally has quadrupled in the last two decades and is. The shell lng outlook assesses the global market for liquified natural gas and highlights key trends from 2018 as well as future supply and demand. Lng is expected to grow at a much faster rate than natural gas overall because of the great distances between many supply centres and demand centres, and because of its inherent eibility compared with delivery by pipeline.

Liquefied natural gas lng portal bloomberg new energy finance. By the end of 2018, lng supply will have grown by an impressive 70 mt, or 29%, over just three years. A comprehensive analysis of trends and developments in the lng market costs and economic viability of sslng stations regulatory developments and unaddressed issues. Lng market trends and their implications analysis iea. Nord stream 2 gas market outlook nord stream 2 will bring liquidity to the eus already wellinterconnected gas market, further improving integration and supporting the blocs energy policy goals. The market structure and trends for the asian liquefied natural gas lng market have evolved dramatically since this fuel was introduced in the late 1960s. Join bnefs lng team for a 45minute webinar covering the changing market dynamics and the latest short and mediumterm lng outlook.

Nov 19, 2019 the liquefied natural gas lng market can be devided based on product types and its subtype, major applications and third party usage area, and important regions. Lng market trends and their implications global lng hub. Our lng products and services deliver a 360degree view of the lng industry. Smallmidscale capacity ships will witness rapid deployment on account of low capital cost and short development schedule. The liquefied natural gas lng market can be devided based on product types and its subtype, major applications and third party usage area, and important regions.

Bloomberg liquefied natural gas lng portal bloomberg. Liquefied natural gas market size lng industry report, 2018. Covid19s economic impacts on the lng market stillwater. Report pdf dataset excel analysis, demand, challenges and prospects smallscale lng market 2020 the sslng report will cover. Flng market growth forecasts 2024 industry projections. In 2018, more than 230 million metric ton of lng was imported. Liquefied natural gas lng market outlook and opportunities. Us lngs competitive advantage depends in large part on high international. Natural gas grows robustly, supported by broadbased demand and the increasing availability of gas, aided by the continuing expansion of liquefied natural gas lng. Discover longterm and shortterm outlook reports on global gas market fundamentals, dynamics and disruptive trends.

We will likely see another wave of us export expansions in 2020. Liquefied natural gas developments and market impacts. This shifted expectations of a loose supplydemand balance i. The global lng market size was estimated at 265 million tons in 2016.

The outlook for 2016 supply growth but where is the demand. The global lng supply capacity in the new year is expected to be more than 380 million tonnes even after assuming lower utilization rates. Lng bunkering market size industry share report 2024. The igu is pleased to present the 2019 world lng report at lng19 in shanghai, highlighting physical and market developments in the lng industry around the world.

This article was originally published december 17th on value investors edge, a seeking alpha subscription service. The liquefied natural gas lng industry is in a state of flux even as it continues to grow, with a number of opportunities and threats facing the six principal business models that make up the market. While traditional markets such as japan or korea have held their position as the largest consumers in the region, their domestic markets have. An already oversupplied lng market comes out of a mild winter with high inventories across europe and asia, only to face a global pandemic which has already destroyed gas demand across china and looks increasingly set to do the same across europe. While global dynamics have been somewhat more favourable of late, prices remain well below previous peaks and new supply from competitors will place further pressure on the market. With increasing pressure on largescale lng plants to showcase returns to investors, the operating companies are increasingly backing smallscale lng initiatives. The global lng market is expected to expand to 370 million tonnes in 2020, thanks to. Onethird of new lng supply growth already online lng volume set to expand 50% from 2014 to 2020 8 source. This has allowed lithuania to bring the price of its ongoing albeit reduced levels of russian natural gas imports to eu averages. Detailed market research and continuous tracking of market developmentsas well as deep, ontheground expertise across the globeinforms our outlook on global gas and liquefied natural gas lng. The bulk of these exports will be to asian customers under longterm contracts, with their price linked to the price of oil. Therefore, we forecast global oil demand will grow by 1. Floating liquefied natural gas market, by capacity.

Outlook from the international energy agency iea projects that. One promising new market that plans to take advantage of f technology is cyprus, where a tender process is under way for. The bulk of these exports will be to asian customers under. The market structure and trends for the asian liquefied natural gas lng market have. Lng market trends and their implications structural evolution of the lng market page 6 the great east japan earthquake in march 2011 ca used a demand shock on the lng market. The rapid development of pipeline infrastructures, increasing demand for natural gas from downstream sectors, reduced prices, and favorable government regulations are. The facilities are mostly deployed in stranded reserves that are economically unfeasible to produce through other units. Industry outlook, top countries data, driving factors by manufacturers, growth and forecast 2024. Flexibility and nimbleness will be key for businesses to expand not just volumes, but also value. Liquefied natural gas market size lng industry report. Expansion in the gas and lng markets continues, with lng demand expected to increase 3.

Lng demand and supply outlook 5 the global lng demand is expected to grow by 6% 7% to 370 million tonnes in 2020, from estimated 350 million tonnes in 2019. The shell lng outlook, now in its fourth year, highlights key trends from 2019. Global gas and lng market outlook to 2035 mckinsey. Australia and the global lng market australian exports of liquefied natural gas lng will rise significantly over the next few years as a number of largescale investment projects reach completion. China imported more than 53 million metric ton of liquefied natural gas lng in 2018, a 43% increase compared to 2017, reaching a new historical high by accounting for 60% of the total natural gas import. Lng carriers market growth, trends, and forecasts 2020.

Australia is significantly ramping up lng production capacity, with new terminals in western australia, queensland and the northern territory having opened or under the advanced stages of construction. The construction of its own lng terminal was completed in 2014. The smallscale lng market is expected to grow at a cagr of greater than 21. Smallscale projects are defined as anything less than 0. The lng outlook is a document developed by gas strategies annually. The increase in liquids production is initially dominated by us tight oil, but opec production subsequently increases as us tight oil declines. How latin america and the caribbean can benefit from the us shale boom 3 however, the nearterm outlook for global lng markets, and us lng exports in particular, is less favorable than previous estimates suggested. United states or the national balancing point in the united kingdom. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Lng market trends and their implications new template. Lng market oversupply to a much tighter market with high demand for flexibility.