North America will continue to dominate global LNG liquefaction capacity additions through 2027. That’s what GlobalData stated in a release sent to Rigzone recently, highlighting that the region will contribute around 59 percent of the total capacity additions between this year and 2027. In its release, GlobalData pointed out that one of its recent LNG reports revealed that North America “is expected to witness the highest capacity additions globally, by gaining a total capacity of 272.1 million tons per annum from new build and expansion projects during the outlook period”.
“The U.S. will primarily drive the LNG liquefaction additions in North America through 2027, accounting for nearly 80 percent of the region’s total capacity additions by 2027,” GlobalData Analyst Himani Pant Pandey said in the release. “Strong global demand for LNG and the availability of abundant shale gas are driving the growth of LNG terminals in North America,” Pandey added.
GlobalData identified Mexico as the second highest contributor to North America’s LNG liquefaction capacity additions in the release, outlining that the country accounted for about 12 percent of total LNG liquefaction capacity additions in North America during the outlook period.
“Canada follows Mexico, accounting for about eight percent of the total capacity additions in the region by 2027,” Pandey noted in the release. In a separate release sent to Rigzone back in June, GlobalData stated that Asia will dominate global LNG regasification capacity additions through 2027. The company outlined in that release that the region will contribute about 70 percent of the total capacity additions between 2023 and 2027.
China will dominate LNG regasification additions in Asia, accounting for nearly 34 percent of the total capacity additions by 2027, GlobalData noted in that release. The company highlighted in the release that India was the second highest contributor to the Asia LNG regasification capacity additions, “accounting for about 22 percent of the capacity additions by 2027”.
“India and China will primarily drive the LNG regasification additions in Asia through 2027, accounting for nearly 56 percent of the total capacity additions by 2027,” GlobalData Oil and Gas Analyst Bhargavi Gandham said in this release. “Growing gas demand from both domestic and industrial sectors and the energy transition targets will be the key drivers of regasification capacity additions in these countries,” Gandham added.
“The Philippines ranks third in Asia, contributing about 10 percent of the region’s LNG regasification capacity additions during the outlook period,” Gandham continued. In a statement posted on Shell’s website back in February this year, which accompanied the company’s latest LNG outlook report, Shell noted that total global trade in LNG reached 397 million tons in 2022 and that industry forecasts expect LNG demand to reach 650 to over 700 million tons a year by 2040.
“More investment in liquefaction projects is required to avoid a supply-demand gap that is expected to emerge by the late 2020s,” Shell said in the statement. “Diverse new technologies to reduce emissions from gas and LNG supply chains will help to consolidate its role in the energy transition,” Shell added.
In the statement, Steve Hill, Shell’s Executive Vice President for Energy Marketing, noted, “the war in Ukraine has had far-reaching impacts on energy security around the world and caused structural shifts in the market that are likely to impact the global LNG industry over the long term”.
“It has also underscored the need for a more strategic approach, through longer-term contracts, to secure reliable supply to avoid exposure to price spikes,” he added. In a statement accompanying the Energy Institute’s (EI) first, and the overall 72nd, annual edition of the Statistical Review of World Energy, which was released in June, EI noted that LNG supply grew five percent to 542 billion cubic meters in 2022, “similar to 2021”.
“LNG supply increases came mostly from North America (10 Bcm) and APAC (eight Bcm). All other regions made a positive contribution to LNG supply growth in 2022 (eight Bcm),” EI added in the statement. “The increase in global LNG demand was triggered by Europe (62 Bcm) in 2022. Countries in the Asia Pacific region reduced their LNG imports by 24 Bcm and those in South and Central America by 11 Bcm,” EI continued.
Source: RIGZONE
