LNG demand depth is substantial, but hard to unlock [Gas in Transition]

LNG demand depth is substantial, but hard to unlock [Gas in Transition]

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Natural Gas News
LNG demand depth is substantial, but hard to unlock [Gas in Transition]

Summary

The number of LNG-importing countries is on the rise, even if plans in a number of mainly low-income countries have stalled. Meanwhile, talk of gas demand destruction may be overestimated – demand has instead been suppressed. [Gas in Transition, Volume 3, Issue 11] by: Ross McCracken

According to a new report by the International Energy Forum (IEF), ten new importers are expected to join the international LNG market in the next two years, helping to drive a 25% expansion in global LNG trade to 500mn t/yr by 2028. Over the period 2019-2022, LNG trade grew by 16% from 337mn t/yr to a record 390mn t/yr (see figure 1), owing, in particular, to the surge in European demand as a result of the war in Ukraine and loss of pipeline imports from Russia. Russian pipeline exports to the EU fell dramatically in 2022 by 55% from 141bn m3 to 64bn m3, and by a further 64% to just 40 bn m3 this year, the IEF says. Demand forecasts highly uncertain for marginal markets However, one of the most uncertain impacts of the Ukraine war and reconfiguration of international LNG trade flows has been the effect on future demand. High prices and a lack of availability have put many LNG import projects on hold, particularly in new and price-sensitive markets. W...