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NorthAmOil                                    COMMENTARY                                          NorthAmOil




       IGU upbeat on global LNG outlook







       The International Gas Union’s annual LNG report is upbeat on the outlook for global

       LNG, and has talked up the role the fuel will play in post-pandemic recovery and the

       energy transition



        GLOBAL           THE International Gas Union (IGU) has pub-  Global LNG trade even rose in 2020 to reach
                         lished its annual report on global LNG, which  356.1mn tonnes. While this was only an increase
       WHAT:             shows that the group is bullish on the fuel’s pros-  of 1.4mn tonnes on 2019, the IGU noted that
       The IGU is bullish about   pects as the world recovers from the coronavirus  the growth had come despite the disruption and
       the post-pandemic   (COVID-19) pandemic. Indeed, the group has  depressed demand caused by the pandemic. The
       prospects for global LNG.  pointed to LNG’s resilience during the worst of  rise was mostly attributed to increased exports
                         the pandemic last year, and has talked up its role  from Australia and the US, which added a com-
       WHY:              in post-pandemic recovery.           bined 13.4mn tonnes per year (tpy) of exports.
       The group expects LNG to   The IGU also believes that LNG has a key role   Meanwhile, Asia again accounted for the
       play a major role in both   to play in the energy transition, saying that gas  largest share of imports, at 70% of the total, as
       post-COVID-19 recovery   in all forms is “imperative” to help individual  well as being responsible for the largest rise in
       and the energy transition.  countries meet their decarbonisation goals. It  imports in 2020, up 9.5mn tpy compared with
                         has called for further LNG infrastructure devel-  2019. This was led by China with 7.2mn tonnes
       WHAT NEXT:        opment, saying this would provide a “critical  of new import demand, with the country having
       There is 892.4mn tpy of   foundation” for a sustainable recovery from  locked down and reopened early in response to
       liquefaction capacity   COVID-19.                      the pandemic.
       awaiting final investment                               Global liquefaction capacity also continued to
       decisions, according to   Resilience                   grow in 2020, with 20mn tpy of capacity added
       the IGU.          The IGU’s previous LNG report was published  to reach a total of 452.9mn tpy. The IGU noted
                         in the relatively early days of the pandemic, amid  that all of the new capacity that came online
                         concern over the impact it would have on global  last year was located in the US. Some planned
                         demand and the ability of supply chains to keep  start-ups were delayed by the pandemic, how-
                         functioning. However, the group said that the  ever, including in the US, Russia, Malaysia and
                         LNG industry had adjusted to the demand fluc-  Indonesia, and thus global liquefaction capac-
                         tuations caused by COVID-19 lockdowns with  ity would have been even higher now had it not
                         “incredible agility”, and supply had continued  been for the pandemic.
                         uninterrupted.                        The average global utilisation rate in 2020 was




































       P6                                       www. NEWSBASE .com                           Week 23   10•June•2021
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