LNG Trade to Increase by 10% in 2020

Shailaja A. Lakshmi
Monday, November 5, 2018

Dominated by new U.S. volumes, liquefied natural gas (LNG) trade is expected to increase by 10 percent per annum from 290 million tons in 2017 to around 388 million tons in 2020, said Golar LNG.

According to industry analysts, ton mile demand is expected to increase by more than 40 percent over the same time frame. Annual fleet growth of 5 percent through to 2020, will, according to industry analysts, not be sufficient to meet this demand.

Leading brokers continue to expect a 30-40 vessel shortfall. As of today there are minimal prompt available vessels worldwide and it is no longer possible to order a vessel for delivery before 2021. Multi-month and multi-year contracts continue to present themselves adding upward pressure on rates.

Increasing U.S. LNG production and start-up of Yamal T2 together with strong Asian demand and rising ton miles prompted a number of multi-month and multi-year charters ahead of the summer cooling season.

Vessel availability declined and rates increased, briefly surpassing their 2017 winter highs. Activity then eased over the summer months before regaining its positive momentum in September as strong end-user demand and rising oil prices fed through to increasing LNG prices, vessel fixtures, and spot rates approaching $100,000 per day.

Newbuild deliveries also began to decline and commercial terms for Pacific basin fixtures exceeded those in the Atlantic for the first time since 3Q 2014. JKM and European gas prices ended the quarter up 86 percent and 43 percent respectively year-on-year, once again driven by strong demand from China and Korea.

Categories: LNG Energy Natural Gas

Related Stories

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

Brownfield Output Decline Accelerates, says IEA

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

CNOOC Brings New Offshore Gas Field On Stream

CNOOC Finds Oil and Gas in South China Sea

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Current News

Russia's Lukoil Takes Up Gunvor’s Offer for Foreign Assets

How Hot Is Your Cable? Understanding Subsea Cable Thermal Performance

Sponsored: UAE Breaks Ground on GW-Scale Renewable Energy Hybrid

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com