In Focus: LNG Outlook
Shell launched its first LNG Outlook in February 2017. Drawing on a broad range of independent industry data and internal analysis, the Outlook highlights key trends in 2016 and focuses on future global demand and supply ().
LNG demand reached 265 million tonnes in 2016, with growth expected to continue at 4-5% a year up to 2030. The LNG Outlook highlights the critical role of gas in the transition to a low-carbon future.
Many analysts expected a strong increase in new LNG supplies to outpace demand growth during 2016. However, demand growth kept pace with supply as greater than expected demand in Asia and the Middle East absorbed an increase in supply from Australia.
LNG trade is changing to mirror the shifting needs of buyers, including shorter-term, lower-volume contracts with greater flexibility.
Building on the BG tradition of producing a similar publication, we intend to offer a balanced and informative outlook for LNG. This business is not only a significant part of our portfolio, but is also a vital part of the energy industry future.
LNG market views
LNG demand growth from China, India and new entrants absorbed supply growth in 2016
Egypt, Pakistan and Jordan – all new importers – made up three of the top five fastest growing LNG importing countries in the world
Global LNG demand reached 265 MT – enough to supply power to around 500 million homes a year
Bulk of growth in LNG exports in 2016 came from Australia, where exports increased by 15 MT to a total of 44.3 MT
Continued LNG supply growth to 2020
LNG demand is set to rise at 4 to 5% a year to 2030
LNG and Russian gas imports required to balance European gas demand
New investments required to meet growing LNG demand after 2020