(Welligence Energy Analytics, 7.Jul.2023) — Our LNG outlook report, published this week to clients, reveals key insights into the industry’s future. Can the LNG market overcome increasingly scarce supply, adapt to more concentrated production, embrace progressively floating infrastructure and meet Net Zero pressures?
- Growing LNG competition from Asian importers will keep gas prices elevated, averaging over US$13/MMbtu in Europe, until 2025. Buyers are already seeking alternatives to Qatari and the US Gulf Coast LNG to manage supply risks, given continued Russian piped gas shortfalls into Europe
- FLNG and FSRUs are leading LNG to an increasingly floating future. Combined FLNG and Fast LNG output doubles from end-2021 levels by 2025, providing quicker and lower-capex supply, primarily from Sub-Sahara Africa. Simultaneously, FSRU capacity is aggressively ramping up, supporting gas European supply security and expanding LNG markets, presently in Asia
- LNG players are adopting technologies, particularly CCS/CCUS, to manage their environmental impact. The race is on to develop southeast Asia’s first LNG-related CCS project, with Malaysia’s Kasawari and Indonesia’s Vorwata projects both targeting startups around 2027
Marc Howson, Head of Asia and LNG at Welligence Energy Analytics, stated, “LNG is increasingly floating towards a greener, but more supply-concentrated, 2030. FLNG and FSRUs are accelerating both production and imports, while CCS is progressively adopted for managing emissions. Meanwhile, buyers are evaluating quickening the growth of alternative LNG supply frontiers, including East Africa and western Mexico.”
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