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LNG’S LEADING ROLE ON

THE GLOBAL ENERGY STAGE

The world’s appetite for LNG is growing at a rapid pace. US, Australia, and Qatar. Other oil and
Hans Kristian Danielsen, Senior Vice President and Marketing gas producing nations, such as Canada
& Sales Director for DNV GL – Oil & Gas, explains the and Russia, are also targeting a bigger
implications for the global gas market slice of the LNG market. Africa, too, is
stepping up activity (Figure 2).
For several reasons, including
atural gas is on track to investment in LNG mega-projects cost, accessibility and reliability,
overtake oil as the world’s Nearly three-quarters (72 per cent) transnational gas pipelines remain
primary energy source by believe LNG buyers need more a strong competitor for LNG supply.
the mid-2020s. Much of this flexible LNG contracts (e.g., to reduce However, there is ample scope for LNG
N expected increase in gas supply volumes, shorten tenures, and change and pipeline gas to grow together, albeit
will be delivered to market as liquefied delivery locations). with LNG expanding at a faster rate.
natural gas (LNG).
A new report from DNV GL, which The globalisation of gas China’s dash to decarbonise
estimates that global LNG production The report, The LNG era takes shape, The People’s Republic of China is on
will increase from 250 million tonnes draws upon a global survey of 291 track to become the world’s largest
per year (mt/yr) in 2016 to around senior LNG professionals. It predicts gas-importing country. In the first half
630mt/yr by 2050, explores the key that the US will have the biggest growth of 2018, China imported a record 24mt/
issues driving LNG’s increasingly in LNG exports over the next three years yr of LNG, 50 per cent more than in
important role in global energy (Figure 1). The expansion and easing the same period in 2017. But there is
markets. Survey findings include: of LNG transit restrictions through significant growth still to come. Gas
The majority of LNG-focused oil and the Panama Canal is strengthening still only accounts for seven per cent of
gas professionals (85 per cent) believe the connection between the US and China’s energy mix today, compared to
several new LNG infrastructure projects consumer markets in Asia. a global average of 22 per cent.
will need to be initiated in 2019 to ensure Many nations are initiating or Its appetite for LNG is driven largely
supply can meet demand post-2025 expanding investment in LNG export by the government’s ‘blue sky’ policies,
Seven in ten (69 per cent) believe capacity. This includes major projects aimed at reducing fossil fuel emissions
price uncertainty is limiting by established LNG exporters in the and improving air quality. Indeed, 72

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