Baku, Azerbaijan, July 29
By Leman Zeynalova - Trend:
The growth in liquefied natural gas (LNG) supply continues to rise and will peak in 2019 with an additional liquefaction capacity of 36 million metric tons per year (mtpa), Trend reports with reference to Fitch Solutions Macro Research (a unit of Fitch Group).
“This follows the 33.4 mtpa growth we forecast for 2018 and the combined growth (equal to around 9 5bcm) is substantial. To put this in context, total market size stands at around 420 bcm for 2018,” the company said in its report.
Fitch Solutions believes that the US will drive the bulk of the gains, with large-scale liquefaction capacity expansions and the ramp-up of production at existing facilities. “Additional volumes from the US have important implications for the flexibility of the market, given that these volumes have no fixed destination.”
“To date, our view is playing out. The combination of early start-ups in Russia and some delays to projects in the US have increased the volume
of liquefaction capacity growth in 2018 and 20 20 and decreased growth in 2019. However, the net impact on LNG supply growth is broadly neutral on an
annual average basis and so we hold to our key theme for the year. In support of this view, the most recent data we have for LNG trade at the global level
runs to April and shows around 15 percent growth y-o-y in the YTD. This compares to growth of around 6 percent in the same period last year,” said the company.
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