Page 6 - NorthAmOil Week 23 2021

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