As the global natural gas market has grown and become more liquid in recent years, its major suppliers and end users have also moved.
For the past half century, Japan has been the buyer of the world’s largest liquid natural gas (LNG), but that is ready to change this year. Their economy is recovering from VV-19 and China is about to take the crown when the government supports natural gas. The country is projected to be zero by 2060 and is expected to drive further LNG demand for coal by 2021.
China is responsible for much of LNG demand growth this year. According to Bofa International Research, the economy is booming, and in the first half of 2021, the global warming rate jumped by about 18% a year. LNG imports are up 30% as of June, compared to the same period last year, or 8.6 million tons, according to Bofea analysts.
Wood McKenzie said earlier this year that China could export 11 megabytes of interest by 2021. If so, the country is projected to achieve global growth in 2021 from 18 m.
According to the International Liquor Exporters (GNL), Japan will reach 74.4m last year, up from 76.8m in 2019.
In China, LNG imports saw the largest increase in imports from 7.2 Mt to 68.9 Mt last year. At the time, China was the world’s second largest importer, following South Korea (40.8m), India (26.6m) and Taiwan (17.8m).
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According to a recent plan by the Japanese government, the country’s share of fossil fuels in energy integration will fall by 79% by 2019 to 41% by 20%. The country is the world’s largest LNG importer, as most of the reception terminals under construction are located there and in South Asia.
Asia’s total LNG imports grew by 3.4% between 2019 and 2020, while imports from all parts of the world increased by 0.4% at the same time, GIIGNL said.
Asia accounted for 71% of LNG’s imports last year and is expected to continue to grow globally in the coming years. Inadequate GDP, low storage capacity and policy work support the region’s oil supply.
Europe is another world destination for NGN exports. The continent serves as a balanced arm due to its strong storage infrastructure and highly liquid markets. According to GIIGNL, Spain (15.3m), England (13.4m), France (13.4m), Turkey (10.7m) and Italy (9m) are the largest importers in Europe.
The region’s food demand in North America is expected to be met by LNG exports.
According to the International Gas Association, the pre-final investment decision worldwide is currently 892.4 m. Most are intended for the United States and Canada.
The U.N. has exported 44.8 meters last year, up from 33.75m in 2019. The 11-meter development is driven by US projects in 2019 and 2020, including Cameron LNG 2 and 3 trains, Corpus Christian Train 3, and Freeport Trains 2 and 3.
According to GIIGNL’s annual report, the US LNG has maintained not only supply growth but also market flexibility as in recent years. Last year, the business group marked a “significant growth” in space and short-term transactions. The volume of both types of contracts has increased to 142.5 Mt, up from 20% in 2019 to 40% of all LNG trade last year.
The LNG industry is evolving as more market participants deal with more risky financial instruments. This has led to an increase in land deals in recent years. GIIGNL reaffirmed the US as a space and short-term LNG exporter, accounting for 21.3 percent of all exports last year. Australia followed suit with 19.9% of the market deals. Spot deals generally include volumes issued within three months of the trading day, but short-term deals can cover a few years.
As the market improves, so do its major suppliers.
Australia totaled 2.4m last year. According to GINL, by 2020 Qatar will have 77.1 m. Qatar expands its massive holdings in the northern hemisphere in the coming years.
Russia also It increased supply in 2020 and is the fourth largest exporter behind the United States, according to GNL, with a volume of 29.6 meters.
Editor’s Note – This section is part of a series on NGI’s LNG Insight aimed at educating you about the global e-commerce business in the North American market.