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Transportation costs to cause changes in LNG supply hubs

Oil&Gas Materials 14 February 2023 17:27 (UTC +04:00)
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, Feb.14. The main centers of the global liquified natural gas (LNG) exports appear to be the US and the Middle East, Trend reports with reference to bp’s 2023 energy outlook.

The US and Qatar primarily cover the global LNG demand growth by 2030. In particular, the increase in US LNG supplies account for over 50 percent of the growth in LNG exports in New Momentum and Accelerated scenarios, while Net Zero suggests that this country accounts for about two-thirds of the total growth.

The share of the US and Middle East in global LNG supplies rise from a third in 2019 to a half by 2030.

Accelerated and Net Zero predict that in the second half of the outlook, the supplies of LNG from the US drop by 50 percent between 2030 and 2050 due to the increasing competition and rising transportation costs, as compared to the Middle East and Africa.

All three scenarios suggest that higher transport costs also cause a decline in LNG exports from Australia. The restrictions on access to western technology and financing put downward pressure on LNG supplies from Russia by 2030. However, bp expects those restrictions to ease gradually after 2030, thus paving a way for Russian LNG supplies to double by 2050 in New Momentum. However, Accelerated and Net Zero suggest that Russia has no chances to recover LNG exports even with the easing sanctions.

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Follow the author on Twitter: @Lyaman_Zeyn

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