April 20, 2024
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OIL & GAS

China and Asian Countries to Dominate Global LNG Demand Growth This Decade

Global demand for Liquified Natural Gas (LNG) is likely to be dominated by China this decade. This was contained in a report by Shell. China, which in 2023 overtook Japan as the world’s top LNG importer, is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas, the report said.

“China is the market that we are most bullish about this decade. And one of the reasons for that is the massive amount of new gas infrastructure that is coming on stream at the moment,” Steve Hill, executive vice president for Shell Energy, told analysts, as gathered by Reuters.

China’s 2024 LNG imports are expected to rebound to nearly 80 million tons, from about 70 million tons in 2023, according to ICIS and Rystad forecasts, surpassing 2021’s record 78.79 million tons.

In parts of South Asia and Southeast Asia, declining domestic gas production, is likely to drive a surge in demand for LNG as these economies need fuel for gas-fired power plants or industry, come 2030 to 2040.

Shell’s report is quoted to have predicted that “In the medium term, latent demand for LNG – especially in Asia – is set to consume new supply that is expected to come on to the market in the second half of the 2020s.”

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