In Focus: LNG Outlook

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 market views

2016 Facts

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

Future trends

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