Sunday, February 25, 2024

The world market is moving towards a jump in LNG supply

According to a report by the American consulting firm Global Energy Monitor, (GEM) “Developments in the global LNG project spurred by Russia’s invasion of Ukraine have materialized this year, as the United States and Qatar strengthen their positions as major developers of export capacity, while the countries in Asia and Europe are scrambling to get new import capacity.

Globally, liquefied natural gas (LNG) development projects (those proposed or under construction) account for 917 million tons per year (Mtpa) of new export capacity and 705 Mtpa of new import capacity, which represents a year-on-year increase of 18% and 4%, respectively.

Of this total, construction continues on 193 Mtpa export capacity and 203 Mtpa import capacity, which if put into operation will increase global capacity by 41% and 19%, respectively.

According to data from the global gas infrastructure tracker, The main countries developing new export terminals are the United States (336.9 Mtpa), Russia (164.1 Mtpa), Canada (75.8 Mtpa), Mexico (69.3 Mtpa) and Qatar (49 Mtpa).

While relatively little new LNG export capacity has come online in recent years, a wave of new projects (half of which are under construction in the United States and Qatar, totaling of 74 Mtpa and 33 Mtpa, respectively) could fill the global LNG market, increasing. competition between exporters and making some projects unprofitable.

The resulting oversupply could leave governments and investors with expensive assets stranded.

New import capacity is dominated by Asia (454 Mtpa) and Europe (183 Mtpa), with China (267.9 Mtpa), India (75.2 Mtpa) and Germany (65.4 Mtpa) having the largest capacity under development.

However, the GEM report expects that “LNG demand in Europe may prove short-lived as the continent continues its decarbonization agenda, and the price sensitivity of many Asian importers cast doubt on growth forecasts.” .” of LNG demand”.

World Nation News Desk
World Nation News Desk
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news