You are here: Home » Markets » Commodities » Energy
Business Standard

Global LNG demand to rise for few decades, Covid a temporary blip: industry

Demand for liquefied natural gas is set to increase steadily for several decades helped by economic growth in Asia, industry executives said, with Covid-19 pandemic seen as only a short-term setback

Topics
LNG | Coronavirus

Reuters  |  LONDON 

LNG

By Ekaterina Kravtsova and Jessica Jaganathan

LONDON (Reuters) - Demand for liquefied natural gas (LNG) is set to increase steadily for several decades helped by economic growth in Asia, industry executives told the Gastech summit this week, with the COVID-19 pandemic seen as only a short-term setback.

"While the world continues to grapple with the severe impacts of market demand and the impact of COVID-19, long-term fundamentals remain strong supported by growing population and demand," Irtiza Sayyed, president, ExxonMobil Market Development Inc, said.

Global gas demand is forecast to decline by around 3% in 2020 and make a robust recovery after that, according to International Forum.

With the world seeking cleaner sources to reduce pollution and CO2 emissions, gas and are expected to provide the corridor to a net-zero future.

"is and will remain a high-growth industry based on a growing economy worldwide, particularly in Asia, with a desire for secure, affordable and cleaner-burning fuels," Douglas Wharton, vice president, Cheniere Marketing Pte. Ltd., told Gastech.

The global gas and LNG conference, launched in London in 1972, was held virtually this year due to the COVID-19 pandemic. It will be held in Singapore next year.

Cheniere forecasts LNG trade demand will grow by an average 3.4% a year between 2019 and 2040, with additional supply required to achieve such growth.

Some executives at the summit said that as had reduced investment in new production, supply may not recover as fast as demand.

Around two thirds of the growth in LNG demand in the next decade will come from China, India, Pakistan and Bangladesh, according to Wood Mackenzie.

Industry executives from India and Taiwan said LNG demand in their countries is growing this year, while most speakers agreed China will be the key driving force for LNG demand in coming decades.

China's gas demand is expected to exceed 600 billion cubic metres (bcm) per year by 2040, up from just over 300 bcm per year in 2020, according to Ming Cai, natural gas and LNG consultant at Poten & Partners.

 

(Reporting by Ekaterina Kravtsova in London and Jessica Jaganathan in Singapore; Editing by Susan Fenton)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, September 11 2020. 16:53 IST
RECOMMENDED FOR YOU