Long-Delayed Launch of New LNG Facilities May Cause Supply ShortageJul 31st, 2017
The analysts of the International Gas Association Cedigaz forecast that natural gas will be the most demanded fuel in the near future. Till 2035 the global consumption of natural gas will remain sustainable with the average annual growth at 1.6%. Moreover, Cedigaz reports that gas consumption will exceed the growth rate of other energy resources.
For global producers and consumers, natural gas and liquefied natural gas (LNG) are still key fossil fuels that they cannot refuse. The world economy is at the transition stage to the efficient and self-sustainable energy system based on the renewable energy sources. At this point, natural gas holds sway over the other fuels.
Within the next two decades, China and the Middle East will be the leading consumers of natural gas buying 28% of the total world consumption. India, Saudi Arabia, Iran and the U.S. will consume as much gas as China.
The experts attend to the essential role of new LNG facilities as well as new (shale gas) and conventional gas resources in keeping the energy balance amid the current reduction of oil and coal consumption.
According to Cedigaz estimations, the world LNG sales are expanding at a faster rate than the sales of pipeline gas. In 2015 LNG share at the global gas sales were 44%. By 2035 it is forecast to grow by 55 %. After regasification, LNG sales will grow on average by 3, 7% per year and finally they will reach 670 billion cubic meters.
Thus, the demand for this fuel will only grow. Furthermore, LNG producers will strengthen their positions in the spot market which will factor in price assessment. However, the analysts warn that after 2023 the delay in new LNG facilities launch may lead to the lack of supply.