Royal Dutch Shell’s annual LNG Outlook report shows a 12.5 per cent rise in global demand for liquefied natural gas, or LNG, last year touching a total of 359 million tons.
Shell has predicted that natural gas set to play “a growing role in shaping a lower-carbon energy system” and citing forecasts, has predicted that by 2040, the global demand for LNG will get doubled to 700 million tons a year.
In 2019, there was a 14 per cent growth in demand for LNG imports in China, Shell added, while a 19 per cent growth in demand was reported from Bangladesh, India and Pakistan which with total imports touching 36 million tons.
“The global LNG market continued to evolve in 2019 with demand increasing for LNG and natural gas in power and non-power sectors,” Maarten Wetselaar, integrated gas and new energies director at Shell, said in a statement issued Thursday. “Record supply investments will meet people’s growing need for the most flexible and cleanest-burning fossil fuel,” he added.
“While we see weak market conditions today due to record new supply coming in, two successive mild winters and the Coronavirus situation, we expect equilibrium to return, driven by a combination of continued demand growth and reduction in new supply coming on-stream until the mid-2020s.”
LNG is essentially is natural gas that has been turned into a liquid through cooling. That makes the fuel to both store and transport. The “volume of the liquid is 600 times smaller than the gaseous form”, according to the U.S. Energy Information Administration (EIA).
Despite natural gas being a form fossil fuel, the EIA says that burning it for energy purposes “results in fewer emissions of nearly all types of air pollutants and carbon dioxide (CO2) than burning coal or petroleum products to produce an equal amount of energy.”
Since 2010, approximately 500 million tons of CO2 had been saved by “coal-to-gas switching”, said the International Energy Agency (IEA) said last year.
In 2018, there was a 4.6 per cent growth in consumption of natural gas, according to the IEA. About 80 per cent of the growth in consumption of natural gas since 2010 has mainly been accounted for by the U.S., China and Middle East, the IEA has said. A “shale gas revolution” in the U.S. is “in full swing,” the IEA has said.
In 2018, there was dry shale gas production in the U.S. amounted to approximately 20.95 trillion cubic feet, according to the estimates of the EIA.
(Adapted from CNBC.com)