Page 6 - FSUOGM Week 23 2021

FSUOGM COMMENTARY FSUOGM

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- concern over the impact it would have on global
lished its annual report on global LNG, which demand and the ability of supply chains to keep
WHAT: shows that the group is bullish on the fuel’s pros- functioning. However, the group said that the
The IGU is bullish about pects as the world recovers from the coronavirus LNG industry had adjusted to the demand fluc-
the post-pandemic (COVID-19) pandemic. Indeed, the group has tuations caused by COVID-19 lockdowns with
prospects for global LNG. pointed to LNG’s resilience during the worst of “incredible agility”, and supply had continued
the pandemic last year, and has talked up its role uninterrupted.
WHY: in post-pandemic recovery. Global LNG trade even rose in 2020 to reach
The group expects LNG to The IGU also believes that LNG has a key 356.1mn tonnes. While this was only an increase
play a major role in both role to play in the energy transition, saying that of 1.4mn tonnes on 2019, the IGU noted that the
post-COVID-19 recovery gas in all forms is “imperative” to help individ- growth had come despite the disruption and
and the energy transition. ual countries meet their decarbonisation goals. depressed demand caused by the pandemic. The
It has called for further LNG infrastructure rise was mostly attributed to increased exports
WHAT NEXT: development, saying this would provide a “crit- from Australia and the US, which added a com-
There is 892.4mn tpy of ical foundation” for a sustainable recovery from bined 13.4mn tonnes per year (tpy) of exports.
liquefaction capacity COVID-19. Meanwhile, Asia again accounted for the
awaiting final investment largest share of imports, at 70% of the total, as
decisions, according to Resilience well as being responsible for the largest rise in
the IGU. The IGU’s previous LNG report was published imports in 2020, up 9.5mn tpy compared with
in the relatively early days of the pandemic, amid 2019. This was led by China with 7.2mn tonnes

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