Page 6 - MEOG Week 23 2021

MEOG COMMENTARY MEOG

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- growth had come despite the disruption and
lished its annual report on global LNG, which depressed demand caused by the pandemic.
shows that the group is bullish on the fuel’s pros- The rise was mostly attributed to increased
WHAT: pects as the world recovers from the coronavirus exports from Australia and the US, which added
The IGU is bullish about (COVID-19) pandemic. a combined 13.4mn tonnes per year (tpy) of
the post-pandemic Indeed, the group has pointed to LNG’s exports.
prospects for global LNG. resilience during the worst of the pandemic last Meanwhile, Asia again accounted for the
year, and has talked up its role in post-pandemic largest share of imports, at 70% of the total, as
WHY: recovery. well as being responsible for the largest rise in
The group expects LNG to The IGU also believes that LNG has a key role imports in 2020, up 9.5mn tpy compared with
play a major role in both to play in the energy transition, saying that gas in 2019. This was led by China with 7.2mn tonnes
post-COVID-19 recovery all forms is “imperative” to help individual coun- of new import demand, with the country having
and the energy transition. tries meet their decarbonisation goals. locked down and reopened early in response to
It has called for further LNG infrastructure the pandemic.
WHAT NEXT: development, saying this would provide a “crit- Global liquefaction capacity also continued
There is 892.4mn tpy of ical foundation” for a sustainable recovery from to grow in 2020, with 20mn tpy of capacity added
liquefaction capacity COVID-19. to reach a total of 452.9mn tpy.
awaiting final investment The IGU noted that all of the new capacity
decisions, according to Resilience that came online last year was located in the US.
the IGU. The IGU’s previous LNG report was published Some planned start-ups were delayed by the
in the relatively early days of the pandemic, amid pandemic, however, including in the US, Russia,
concern over the impact it would have on global Malaysia and Indonesia, and thus global lique-
demand and the ability of supply chains to keep faction capacity would have been even higher
functioning. now had it not been for the pandemic.
However, the group said that the LNG The average global utilisation rate in 2020 was
industry had adjusted to the demand fluctu- 74.6%, spiking at the end of the year alongside
ations caused by COVID-19 lockdowns with Asian spot prices and demand for LNG. This
“incredible agility”, and supply had continued helped offset the impact of nearly 160 cargo can-
uninterrupted. cellations earlier in the year, especially during
Global LNG trade even rose in 2020 to reach June-August, which is traditionally a period of
356.1mn tonnes. While this was only an increase low seasonal demand that was significantly exac-
of 1.4mn tonnes on 2019, the IGU noted that the erbated by the pandemic.

P6 www. NEWSBASE .com Week 23 09•June•2021