Page 4 - GLNG Week 28 2021

GLNG COMMENTARY GLNG

BP’s statistical review

shows LNG growth

The publication of BP’s annual statistical review shows

how LNG trade grew modestly last year despite the hit

from the COVID-19 pandemic

PERFORMANCE IT was already known that LNG remained already being dwarfed by the growth of LNG,
comparatively resilient last year despite the hit but the pandemic accelerated LNG’s uptake of
WHAT: it took from the first wave of the coronavirus market share.
LNG trade grew last year, (COVID-19) pandemic. Now new data are pro-
according to BP . viding more clarity on some of the trends that Regional trends
played out. Most recently, BP’s annual ‘Statisti- A closer look at some of the regional figures also
WHY: cal Review of World Energy 2021’, which was contributes to a more complete picture of some
Demand for the super- released last week, has illustrated some of the of the trends that played out last year. For the
chilled fuel expanded most prominent trade patterns in LNG, and how global LNG industry, 2020 was characterised by
more slowly than in prior they changed in 2020 compared with prior years. gradual increases in liquefaction and regasifi-
years but nonetheless According to the super-major – whose statis- cation capacity amid depressed demand for the
proved resilient to tical review is a primary data source for many super-chilled fuel.
COVID-19. energy industry players, as well as government The demand hit was particularly apparent for
agencies and others – global LNG trade rose US LNG exporters, which saw an estimated 165-
WHAT NEXT: to 487.9bn cubic metres in 2020. This was an 200 scheduled cargoes cancelled last year. The
Trade is expected to keep increase of 0.6% on 483.8 bcm in 2019 – a slower nature of the majority of US LNG offtake con-
growing this year as rate of increase than the average of 6.8% per year tracts meant that they were typically the easiest
more countries re-open that had been seen during the previous decade. for buyers to cancel. However, BP’s data show
following the first waves Notably, LNG trade accounted for more that US LNG exports still rose by 29.2% in 2020
of the pandemic. than half of global natural gas trade for the first to 61.4 bcm, compared with 47.4 bcm the pre-
time, but this was primarily driven by a decline vious year. This can be attributed in part to new
in inter-regional pipeline trade. Total pipeline liquefaction capacity additions, and illustrates
volumes fell 10.9% from 506.3 bcm in 2019 to the relative strength of LNG demand, given the
452.2 bcm in 2020. This, in turn, contributed to cargo cancellations, and also hurricane-related
a 5.3% year-on-year reduction in the total trade disruption to operations on the US Gulf Coast.
figure for 2020, which came in at 940.1 bcm, Aside from the US, Russia, Angola, Australia
down from 990.1 bcm the previous year. Previ- and Indonesia saw their exports rise compared
ously pipeline trade had been rising at an aver- to 2020, but by more modest amounts in per-
age of 1.8% per year over 2009-19, and was thus centage terms.

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