New York, June 1, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “LNG Market – Growth, Trends, COVID-19 Impact and Forecasts (2021 – 2026)” – https: // www. reportlinker.com/p06079793/?utm_source=GNW
However, oversupply of LNG and trade tensions are expected to hamper market growth during the forecast period.
– The liquefaction sector is expected to be the largest market during the forecast period, due to increased investment from LNG exporting countries.
– A large number of LNG development projects / plans are expected to be proposed in the coming years, supported by the growing demand for LNG, leading to the creation of several opportunities for market players in Africa, thus creating an emerging LNG market .
– Asia-Pacific is expected to be the biggest market during the forecast period, with the majority of demand coming from countries like China, Japan, etc.
Main market trends
Liquefaction sector to dominate the market
– By the end of 2020, total global liquefaction capacity reached approximately 454 MTPA in 22 countries, increasing by approximately 24 MTPA from 2019. In 2020, five new large-scale liquefaction trains, all located in the United States, exported their first LNG volumes 2020: Cameron LNG trains 2 and 3, Corpus Christi LNG Train 3 and Freeport LNG trains 2 and 3. A single FID was carried out in 2020, on the 3.25 MTPA Energía Costa Azul LNG project in Mexico, and Around 108 MTPA of new liquefaction capacity was under construction worldwide by the end of 2020.
– From 2020, the countries with the largest operational LNG liquefaction capacity were Australia, followed by Qatar, the United States, Malaysia, Russia, Indonesia and Algeria . Australia overtook Qatar as the market with the highest liquefaction capacity in 2019 and was also the largest market in 2020. Australia added 12.5 MTPA in 2019 due to the commissioning of ‘Ichthys LNG T1-T2 and Prelude LNG. However, Qatar is expected to regain its position as the leading market in terms of liquefaction capacity by 2026-2027. In February 2021, Qatar reached the FID on the North Field East (NFE) project, comprising four LNG mega trains of 8 MTPA each, at an estimated cost of USD 28.75 billion. The 33 MTPA project is expected to start production in the fourth quarter of 2025 and will bring Qatar’s LNG production to around 110 MTPA by the end of 2026 or early 2027.
– Additionally, a significant increase in capacity in the United States was observed with 23.35 MTPA of liquefaction capacity added in 2019 and around 24 MTPA in 2020. This helped the United States to become the world’s third largest producer of LNG, overtaking Malaysia and Russia. In 2020, the three main LNG exporting markets (Australia, Qatar and the United States) accounted for nearly 50% of global liquefaction capacity.
– Global liquefaction capacity is expected to almost triple if all proposed projects are completed compared to 2019. The majority of proposed capacity additions are from North America (599.6 MTPA), with 350.5 MTPA in the United States , 221.8 MTPA in Canada and 27.4 MTPA MTPA in Mexico, followed by Africa (93.3 MTPA), Asia-Pacific (72.4 MTPA) and the Middle East (93.3 MTPA ).
– However, due to the negative impact of the COVID-19 pandemic, global LNG exports fell by around 22% between January and June 2020, countries like the United States, Malaysia, Oman, Trinidad, Egypt and Indonesia leading to reductions in supply. . The second half of 2020 saw a significant recovery as LNG export volumes gained momentum, with importing countries easing lockdowns and industrial activities returning to pre-COVID levels. According to the IEA, between June 2020 and December 2020, the global supply of LNG increased by 25%.
– Therefore, based on the above factors, the liquefaction industry is expected to dominate the global LNG market during the forecast period.
Asia-Pacific dominates the market
– Asia remains the leading importing region with a share of 71% of global LNG imports, against 69% in 2019. Asian LNG imports increased by 3.4% in 2020, reaching 254.4 MT. Imports increased in all Asian countries except Japan, Pakistan, Indonesia, Malaysia and Singapore. Japan experienced the largest drop in LNG imports (-2.4 MT), a decrease of 3.2%. This happened in particular due to the drop in LNG imports during the second quarter of 2020 following the lockdown measures implemented in the country and their downward impact on electricity consumption.
– However, LNG imports showed a gradual recovery from June with a peak in December 2020 due to exceptionally cold weather. Despite this, Japan remains the world’s leading LNG importer with 74.4 MT or 20.9% market share.
– China, the second largest importer of LNG in Asia-Pacific, experienced the strongest growth in terms of imported volumes (+ 7.2 MT or + 11.7%), which was lower than its growth of 14% in 2019. The main surge in LNG imports took place in the second quarter of 2020, when LNG imports were favored over pipeline imports, due to lower LNG spot prices. China remains the world’s second largest importer of LNG, with 68.9 MT, or a market share of 19.3%, up almost 2% from its market share in 2019 (17.4%).
– In addition, China, in order to meet the growing demand for gas, has invested in LNG terminals. In June 2020, Guanghui commissioned phase 3 of its LNG receiving terminal in Qidong, Jiangsu, which increased the terminal’s receiving capacity to 3.0 MTPA. The phase 4 expansion works started in May 2020 and is expected to be completed by the end of 2022. The terminal will then have a reception capacity of 4 MTPA after the completion of phase 4.
– In addition, in 2020, LNG spot prices in Japan at the end of the year (September – December 2020) continued to increase due to the increasing demand for gas for power generation during the winter months . The government plans to increase storage and gasification capacity in order to curb the electricity shortage, which is likely to stimulate the growth of the studied market.
– Hence, based on the above-mentioned factors, the Asia-Pacific region is expected to dominate the global LNG market during the forecast period.
The LNG market is fragmented. Some of the major players include Fluor Corporation, TechnipFMC, Bechtel Corporation, Royal Dutch Shell PLC and Gasum AS.
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