Global LNG production is ‘one element to watch in 2019’, with the global liquefaction capacity expected to increase from 396 Mt in 2018 to 434 Mt in 2019, according to data provided by research company Rystad Energy.
As shown in the figure, most of the new capacity will be added by the commissioning of US projects.
Namely, North America is set to lead the next wave of global LNG project sanctions in 2019, with three US Gulf Coast developments –Sabine Pass Train 6, Golden Pass and Calcasieu Pass– expected to reach final investment decision (FID) in the first half of 2019, according to energy consultant Wood Mackenzie.
The US capacity expected to grow from 29 Mt to 61 Mt this year as Cameron LNG, Elba Island and Freeport start operations and Sabine Pass and Corpus Christi continue to ramp up. Australia will overtake Qatar as the world’s largest LNG exporter with the ramp up in production in Prelude FLNG and Ichthys. The country has already overtook Qatar for the first time in November.
With the new capacity, global LNG production will reach close to 350 Mt this year up 11% year on year, which will lead to a looser market.
According to previously published figures by Research and Markets, the global LNG carriers market is anticipated to grow at a CAGR of 4.74% during the period 2019-2023.