According to TechSci Research's latest report, 'Global LNG Market Demand & Supply Analysis, 2011 - 2025', the global market for liquefied natural gas (LNG) is projected to grow at a CAGR of more than 5% during the 2016 - 2025 period, due to capacity expansions in the power, industrial, residential and transportation sectors. A major share in demand for LNG across the globe emanates from the Asia Pacific region, with Japan, South Korea, China, India and Taiwan accounting for around 69% of total LNG supply in the area in 2015. Over the last five years, LNG prices have fallen to below US$3/million Btu, which has resulted in the renegotiation of long term LNG supply contracts. However, global average LNG import prices are expected to moderately grow during the 2016 - 2025 period, due to oversupply conditions and liquefication capacity additions, especially in Australia, the US and Papua New Guinea. Consequently, an increasing number of LNG importers, traders and aggregators have started to opt for spot price mechanism instead of long term agreements on account of price arbitrage.
As of 2015, there were 33 LNG importing and 17 exporting countries, globally. Total global regasification capacity of LNG reached around 777 million tpy in 2015, and around 71.92 million tpy of regasification capacity was under construction in the same year. Europe and the Middle East and Africa are expected to witness maximum regasification capacity additions during the 2016 - 2025 period. An increasing number of projects related to the power, city gas distribution and petrochemical sectors are anticipated to come up over the next 5 - 10 years across the globe, which is expected to positively influence the global LNG market through 2025.
"Growing demand for LNG and [the] opening of [a] wider Panama Canal has considerably reduced lead time for supply of LNG from the US to many countries in Asia Pacific and South America, thereby driving global LNG supply. Growing adoption of natural gas in various downstream industries due to concerns associated with poor air quality, coupled with booming downstream infrastructural developments, increasing capital investments in oil and gas exploration and production activities, and [a] favourable policy environment across [the] majority of the leading economies, is projected to boost demand for LNG across the globe in the coming decade," said Karan Chechi, Research Director with TechSci Research.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/08112016/global-lng-market-to-grow-at-cagr-of-5-until-2025/