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June-August, which is traditionally a period of projects are, while developers have been rethink-
low seasonal demand that was significantly exac- ing their capital allocation plans. However, the
erbated by the pandemic. group said small-scale LNG remained a grow-
ing segment within the wider LNG industry as a
Looking ahead result of these trends.
The global LNG industry is anticipated to grow The IGU’s report sought to highlight the role
further still, though there are uncertainties LNG can play in both the post-pandemic recov-
related to the energy transition to be navigated ery and the energy transition. The group noted
in the longer term. The IGU estimated that as of this in reference to both LNG as a marine fuel
February 2021, there was 892.4mn tpy of lique- in a decarbonising world and to gas use more
faction capacity awaiting a final investment deci- broadly.
sion (FID), with the US and Canada accounting These arguments will be contested by those
for the majority. advocating a shift away from fossil fuels alto-
It is worth noting that this figure will now gether in favour of renewables, but thus far con-
be smaller, as a few North American projects sumption trends appear to support the IGU’s
were scrapped after February. Nonetheless, a expectations that gas demand will continue to
considerable amount of liquefaction capacity grow. The group said that global regasification
is still awaiting FID, with a backlog of projects capacity had risen to 850.1mn tpy as of February
deferred from 2020 adding to this. Indeed, only 2021, with 19mn tpy added in 2020. As with liq-
one new liquefaction project – Sempra Energy’s uefaction, some projects previously targeted for
Energía Costa Azul LNG in Mexico – reached start-up in 2020 were pushed back to 2021, and
FID last year, which the IGU said was one of the the IGU said it anticipates future regasification
worst years recently for sanctioned liquefaction capacity additions in both established regions
capacity. and new markets. The group identified Ghana,
Things are already turning around in 2021, El Salvador, Vietnam and Nicaragua as likely
with Qatar Petroleum (QP) announcing an FID new importers that could emerge by the end of
on its North Field East expansion – the largest 2021.
LNG project in the world – in February, while The dialogue and policy around the energy
a number of developers are still targeting FIDs transition are changing rapidly, but for now, this
later in the year. appears to have done nothing to dampen the
The IGU warned, however, that a “large por- appetite for LNG. This could change in the com-
tion” of the pre-FID projects was unlikely to pro- ing years, but for now the IGU appears confident
gress. It noted how capital-intensive major LNG of the fuel’s role in the world.™

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