Experts have predicted huge production of Liquefied Natural Gas, LNG, in 2019 amid strong global demand, especially from China.
A final investment decision (FID) could be taken on more than 60 million tonnes per annum of LNG capacity this year, well above the previous record of about 45 million tonnes in 2005 and triple last year’s 21 million tonnes, Wood Mackenzie’s research director for global gas and LNG, Giles Farrer, said.
Woodmac in a report to its clients named Nigeria as key to the expansion drive as the country awaits Final Investment Decision, FID, in the train 7 being run by the Nigeria Liquefied Natural Gas, NLNG. Amid a plethora of potential new production from Russia, Australia, East Africa and the United States, top 2018-LNG exporter Qatar is also expanding.
Huge increases in China’s demand growth as part of a programme to shift households and factories from coal to gas, increased LNG import dependency in Europe, and a backlash against dirtier coal is driving optimism in the industry. It said LNG supply will already grow by an estimated record 40 million tonnes, or 13 percent, this year, potentially putting pressure on Asian LNG prices , currently around $9 per million British thermal units.
In terms of demand, China continues to post strong growth while Europe could also see increases after years of stagnation, growing by about 20 million tonnes and playing a key role in absorbing new American supply. But risks loom, especially from the U.S.-China trade war which threatens global growth which, in turn, could pull down oil and gas prices and delay or cancel FIDs, analysts said.
Source: Oriental News