The world’s largest LNG producer, Qatargas is expecting that over the next five years, global gas demand will grow about 2% per year, slightly lower than previous forecasts.
“ The slower growth is attributed to lower electricity demand growth in Asia, and lower oil prices leading to less infrastructure development in the Middle East ,” Alaa Abujbara, Qatargas Chief Operating Officer – Commercial and Shipping said at the Gastech Conference on Wednesday.
According to Abujbara, the global energy sector is going through a fundamental re-balancing process, characterized by new market dynamics and price volatility. However, the longer term fundamentals for natural gas and LNG look bright.
“ We believe that economic growth, urbanization, environmental policies and the application of new technologies – all support the long term future of our industry ,” Abujbara said.
Abujbara noted that, in the LNG sector, the global market has been adjusting this year to a number of factors including the lower oil price, lack of short-term demand from the traditional Far East markets, new markets appearing in the Middle East, and ample supply from existing and new producers, all of which have led to an uneven market where each region is attempting to balance local supply and demand.
Global LNG trade
Speaking about the global LNG trade, Abujbara said that it currently stands at around 250 million tons per annum (mtpa), but it is expected to reach over 400 mtpa by 2025
Despite there being over 100 million tons of liquefaction capacity under construction around the world, there are questions whether there will be sufficient supply to satisfy demand after 2020.
With the right set of fundamentals in place, the industry will “ fulfill its promise of delivering available, affordable and acceptable LNG, ” Abujbara said.
“ We must remain vigilant in advocating for the future of our industry ,” he concluded.
LNG World News Staff; Image: Qatargas