Global LNG to grow 50% by 2020 from 2014 volumes: Shell

Gas has been the fastest-growing hydrocarbon for the past decade, with demand increasing at around 2% a year since 2000 according to Shell’s first ever LNG Outlook. In the same period, global LNG demand has increased by an estimated annual average of 6%, reaching 265 million tonnes in 2016.

Gas will become even more crucial as the world seeks to meet rising energy demand while making the transition to a low-carbon energy future. The report states that gas will play an important role in this transition, namely to replace coal and back up intermittent renewable energy sources.

As such, global gas demand is projected to increase by 2% a year between 2015 and 2030, while LNG demand is estimated to increase by 4-5%. Shell’s report also highlighted the following trends:

• By 2020, the size of global LNG trade is projected to grow by 50% compared to volumes in 2014
• Future LNG demand growth will be driven by: policy, floating storage regasification units (FSRUs), replacing declining domestic gas production, small scale LNG and transport
• LNG trade is changing to meet the evolving needs of buyers, including shorter-term and lower-volume contracts

Find out more about the report here.