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The International Gas Union's (IGU) recent report on world LNG markets found that the trade increased by only 1.4 mt to 356.1 mt compared to 2019 supported by increased exports from the US and Australia, together adding 13.4 mt of exports. Asia Pacific and Asia again imported the most volumes in 2020, together accounting for more than 70% of global LNG imports. Asia also accounted for the largest growth in imports in 2020--adding 9.5 mt of net LNG imports vs. 2019. While 20 mtpa in liquefaction capacity was brought on stream in 2020, all in the US, startup of several liquefaction trains in Russia, Indonesia, the US, and Malaysia were delayed as a result of the pandemic, according to the report. The only project that was sanctioned in 2020 was the 3.25-mtpa Energia Costa Azul facility in Mexico, and in early 2021 Qatar took final investment decision (FID) on four expansion trains totaling 32 mtpa.
Despite concerns over the fall in liquefied natural gas (LNG) spot prices and the lack of sanctioning for new liquefaction floating LNG (FLNG) projects, capital expenditure (Capex) on FLNG units will total USD 41.4 billion over the 2016–2022 period. Liquefaction units will account for 60% of total expenditure--totaling USD 24.7 billion. Import units will make up the remaining USD 16.7 billion--40% of total expenditure over the forecast period. In recent years, global economic growth has been the main driver of increased energy demand. LNG demand is also expected to benefit from efforts to reduce global emissions, providing the means for a shift from the use of coal to gas as a source of energy.
The liquefied natural gas (LNG) industry is expected to see a series of new projects, driven by a growing appetite for natural gas. The new edition of Douglas-Westwood's World LNG Market Forecast 2015–2019 forecasts global capital expenditure (Capex) to total nearly USD 259 billion from 2015 to 2019 (Figure 1). This includes spending on baseload onshore and offshore liquefaction, LNG carriers, and LNG regasification at onshore and offshore fixed terminals. Australasia and North America will be the main center of liquefaction development while Asia will lead in installed capacity of import terminals. North America is projected to become a net exporter, transforming from the second largest import region over the past 5 years, to zero over the forecast period.
A continuation in the recovery of liquefied natural gas (LNG) expenditure is under way worldwide, driven by a growing demand for natural gas. Douglas-Westwood's World LNG Market Forecast expects that global capital expenditure (Capex) will total nearly USD 228 billion during the 2013–2017 period (Figure 1). The surge includes Capex on baseload onshore and offshore fixed LNG liquefaction, LNG carriers, and LNG regasification in onshore and offshore fixed import terminals. Activity over the next 5 years is underpinned by financial commitments to liquefaction projects and gas import facilities. The liquefaction developments will drive expenditure, with Australasia and North America playing fundamental roles in bringing new supply into the international market.
Increasing gas demand and the requirement for short-term to medium-term import solutions have led to rapid growth in the floating regasification sector in recent years. The industry grew from the Gulf Gateway floating liquefied natural gas (FLNG) unit in the Gulf of Mexico (2005 to 2012) to 10 operational vessels last year. Similarly, the floating liquefaction market is gaining traction with the first baseload FLNG liquefaction terminal, the Petronas Kumang Cluster project, due on stream in 2016. The emergence of floating liquefaction will drive a significant increase in total global capital expenditure (Capex) to 2019. While expenditure is expected to increase in the existing regasification market, the liquefaction sector is forecast to overshadow this, as Capex associated with a floating liquefaction terminal is more than triple that of a typical floating import terminal.
1. Market Four years ago liquefaction capacity was considered to be the bottleneck in the LNG market. This unbalance in supply/demand of LNG led to huge investments in new liquefaction capacity and in 2009 and 2010 there is 45 and 30 mtpa respectively of new liquefaction capacity that is scheduled to come on stream. Roughly half of these volumes are not yet sold to a specific customer and HLNG expects that the new capacity, combined with the challenging economic environment, will lead to a slight change in the shortage of liquefaction capacity that we have seen these last years. For the liquefaction projects with planned start-up from 2011 and onwards HLNG expects that there will be severe delays because of the increasing construction costs we have seen the last years, the decrease in oil and gas price and difficulties to obtain financing.