Anglo-Dutch energy giant Shell says supply for liquefied natural gas (LNG) is expected to rise by 34 million tonnes to 319 million tonnes this year, spurred by demand from Asia and Europe.
Shell in its annual LNG Outlook released on Monday said Asia’s strong demand for clear-burning fuel continued to boost the rapid growth LNG use in 2018.
The oil and gas major said although it expects LNG demand to reach about 384 million tonnes in next year, based on current demand forecasts, it foresees supplies to tighten mid-2020.
Shell also said that a rebound in new long-term LNG contracting in 2018 could revive investment in liquefaction projects.
“A rebound in new long-term LNG contracting in 2018 could revive investment in liquefaction projects,” Shell said.
“Based on current demand projections, Shell still expects supplies to tighten in mid-2020s,” it said.
Spot trade amounted to 1,400 cargoes in 2018, which was close to 30 percent of the global market compared to 25 percent in 2017, Shell said. Spot trade, the buying and selling of cargoes for immediate delivery, signals a more flexible, mature market.