LNG Supply & Market

Global electricity and transportation companies are now looking to replace oil with cleaner burning natural gas. As such, the demand for liquefied natural gas will likely experience growth in the international and domestic market.

According to the International Energy Agency, the global energy demand is expected to grow by 30% between 2015 and 2040(1). Global demand for LNG is predicted to grow from approximately ~175 MMPTA in 2010 to approximately ~375 MMPTA in 2020 and around ~575 MMPTA by 2035(2). It is predicted that demand in 2017 will increase ~9% to 280 MMTPA as China and Emerging markets will drive the demand growth over the next few years driven by Southeast Asia’s demand. European demand is expected to buoy the global LNG demand from 2026 to 20304(3).

 

(1) Royal Dutch Shell plc, Shell LNG outlook 2018: External Environment Creating More Opportunities For Gas And LNG, page 5.

(2) Royal Dutch Shell plc, Shell LNG outlook 2018: Supply Investment Required To Meet Long-Term Demand Growth, Shell interpretation of HIS Markit, Wood Mackenzie FGE, BNEF and Poten & Partners Q4 2017 Data, page 24.

(3) Todd Kepler, CFA, Pieridae Energy Limited: On Track to Become Canada’s First Major LNG Exporter, Laurentian Bank Securities, Oil and Gas, January 16, 2018, page 20.