- Liquefied Natural Gas (LNG) trade set a record for the fifth consecutive year in 2018, reaching 316.5 million tonnes – a 9.8% increase on 2017
- Natural gas meets almost 25% of the global energy demand, with 10.7% of that supplied as LNG
- US and Australia both ramped up supply of LNG, with China, South Korea and other Asian nations leading demand growth
BARCELONA, Spain, April 2, 2019 /PRNewswire/ -- Today, the International Gas Union (IGU) released its 2019 World LNG Report – an annual, in-depth analysis of the current state of the Global LNG Industry over the previous 12 months.
Examining a range of metrics, the latest report illustrates that 2018 was another strong year for LNG, further reinforcing its role in expanding access to natural gas as a vital global energy source. Global LNG trade set a record for the fifth consecutive year, reaching 316.5 million tonnes (MT). This marks a significant increase of 28.2 MT, or 9.8%, from 2017 – the third-largest annual increase ever (behind only 2010 and 2017).
Over 99 MT of this number was accounted for by non-long-term trade, which equates to a 14.5 MT increase on 2017 and makes up 31% of total LNG trade. This marks the second year in a row in which the non-long-term market has substantially expanded, due to growing LNG supply and demand elasticity.
The overall growth in global LNG trade can be attributed primarily to increases in LNG supply – coming from higher production at new liquefaction plants. The single greatest increase in LNG exports occurred in Australia (+12.2 MT), owing to new trains coming on-stream and higher utilization at existing facilities. Other significant contributors to LNG supply were the United States and Russia, which added 8.2 and 7.8 MT respectively, across new and existing trains. Despite increases in these markets, the Asia-Pacific region continues to be the leading LNG-exporting region, supplying 38.4% of total exports (121.6 MT). This share is consistent with its share of global exports since 2016.
Increasing demand in 2018 also played an essential role as a key driver of growth in global LNG trade. The additions of Bangladesh and Panama as the two newest importing markets in the last year brought the total number of importing markets to 37. Asia remained the driver of international LNG demand growth, with China and South Korea returning as the key sources of LNG import demand in 2018, with growth of 15.8 and 6.4 MT respectively. Together, China and South Korea accounted for nearly 80% of the increase in net trade. Other key markets that drove global LNG growth included India and Pakistan, while European LNG imports too increased year on year for the fourth consecutive year, by 3.4 MT. This increase occurred despite net negative incremental growth in these markets through the first three quarters of the year, with the fourth quarter of the year making up for the losses, as it was the second strongest quarter ever for net imports into the region.
Between January 2018 and February 2019, an additional 36.2 MT of liquefaction capacity was added to the global nominal capacity – equating to a global total of 393 MTPA. This growth in liquefaction capacity is expected to continue, with 101.3 MTPA of capacity under construction or sanctioned, as of February 2019.
Professor Joe M. Kang, President of the IGU, said: "The future looks very bright for LNG, as evidenced by the fifth consecutive record-breaking year for global trade. With increases in both demand from across the world, and ramping up of supply to meet it, it is clear, that nations across the globe are recognising LNG's ability to provide a clean, efficient, and affordable source of energy. The vibrant LNG industry brings great benefits to society by improving energy security and offering opportunities to meet emissions targets, while facilitating access to energy in diverse markets around the world. We only anticipate this upward trend for global trade to continue, and for natural gas to keep improving the quality of life for millions of people as it becomes increasingly more accessible."
The World LNG Report, a flagship annual publication by the IGU, provides key insights into LNG industry developments during 2018. While the Report's focus remains, as in years past, upon recent historical data, the Report also provides a glimpse into the future of key developments and trends in the world of LNG. Published since 2010, the Report serves many in the international energy business as a standard desk reference for information on the LNG industry. To download the full report, please visit www.igu.org/lng.
About The International Gas Union (IGU)
The International Gas Union (IGU) was founded in 1931 and is a global non-profit organisation promoting the political, technical and economic progress of the gas industry. The Union has more than 160 members, across all continents, representing approximately 95% of the world gas market. The members of the IGU are national associations and corporations within the global gas industry. The IGU organises the World Gas Conference (WGC) every three years, with the forthcoming WGC in Daegu, South Korea, in June 2021. The IGU's working organisation covers all aspects of the gas industry from exploration and production, storage, LNG, distribution and natural gas utilisation in all market segments. www.igu.org
SOURCE The International Gas Union (IGU)