Oil major, Shell, launched its LNG Outlook for 2020, presenting that the global liquefied natural gas (LNG) demand increased by 12.5% to 359 million tonnes in 2019, an important increase that boosts LNG’s role in the switch towards a lower-carbon energy system.
- industry record of 40 million tonnes of additional supply becoming available and being consumed by the market.
- the belief in long-term demand growth triggering record investment decisions in liquefaction capacity of 71 million tonnes.
- an increase in diversity of contractual structures, providing a wider range of options to LNG buyers.
- the growing role of gas in improving air quality through coal-to-gas switching in the power and industrial sectors, with coal generation phase-out announcements more than trebling.
In addition, the report notes that natural gas emits 45-55% less greenhouse gas (GHG) emissions and less than one-tenth of the air pollutants than coal when used to generate electricity.
Asia saw a modest rise in imports during 2019 in comparison to the two previous years, which was the result of mild weather and the increasing electricity generation from nuclear power in Japan and South Korea, two of the three largest global importers. Also, China’s LNG imports rose by 14% in efforts to improve its urban air quality, while South Asia also had a positive experience with LNG demand growth. Specifically, Bangladesh, India and Pakistan imported 36 million tonnes, an increase of 19% over last year, pointing to emerging growth countries in Asia.
Maarten Wetselaar, Integrated Gas and New Energies Director at Shell commented that
The global LNG market continued to evolve in 2019 with demand increasing for LNG and natural gas in power and non-power sectors … Record supply investments will meet people’s growing need for the most flexible and cleanest-burning fossil fuel.
To learn more on Shell’s LNG Outlook click herebelow