2018/2019 faces positive developments in the LNG sector, which are forecast to continue until the end of 2019 and into 2020. This development, Olivia Watkins explains, comes from growing demand, with more and more countries prioritising LNG as an energy source.
China is the leader of this growth, as it is becoming the largest source of new LNG demand growth, as well as the second largest importer of LNG. This was mainly driven by China’s program to shift millions of households and a large number of factories to natural gas.
Except for China, Green and Japan are dominating, as far as USD value is concerned. More specifically, Greece has surpassed Japan as the top owning country, after ordering numerous ships since 2018.
Nevertheless, China is not much behind, as it owns a total of USD 5.9 billion of large LNG assets. This number equals to around 13% of the top 5 owning countries.
As VesselsValue says, China is currently making the move in the LNG market, leveraging the sector's development. Namely, its gas power plan is shifting from the conventional energy sources.
This plan aims to continue investment in LNG assets, grow domestic yard production to compete with S.Korea, and eventually become a leader in LNG terminal investments.
A potential change in LNG market dynamics looks to be occurring and the next few years for will be an interesting time for both China and the LNG sector as a whole
Olivia Watkins notes.