LNG: 2019 in review Report

Insight 23 January 2020

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Report summary

LNG trade grew by a record amount in 2019. Both USA and Russia led the charge to commission the largest volume of new LNG, but it is Australia that takes the crown for world’s largest LNG exporter of 2019. Absorbing this large volume of new LNG required a significant rebalancing of global demand. Japan and Korea both declined, and even China was not able to maintain the same pace of growth as in 2018. This meant that it fell to Europe’s large and flexible gas market to absorb the LNG oversupply. This demand rebalancing had a very immediate effect on prices, with North Asian LNG prices averaging some 41% less than 2018. Liquefaction project FIDs reached an all-time record with six projects sanctioned in 2019 totalling 71 mmtpa of capacity. Investment in LNG shipping continued at a rapid pace with 50 news ships ordered. However, investment in regas infrastructure failed to keep pace, with only a handful of terminals taking FID last year.

Executive Summary
LNG supply
- LNG supply highlights of 2019
- Russia: NOVATEK looks to build on Yamal success
- Middle East: Qatar’s expansion is getting bigger
- Africa: two projects sanctioned in 2019 while backfill is needed at existing facilities
- Oceania: Australia becomes the largest LNG producer
- North America: 2019 was a record year for LNG in FIDs and train start-ups
- Latin America: Questions remain on Argentina’s export ambitions
LNG demand
- LNG demand highlights of 2019
- China – Economic slowdown drags on short-term LNG demand
- Japan, South Korea, Taiwan: Stronger nuclear, anti-coal policy and environmental concerns once again shape the ebb and flow of LNG imports
- South East Asia – Positive LNG momentum with growing consumption, market liberalisation and regas project approvals
- Americas – LNG imports flat overall but some significant underlying shifts
- Europe – NW Europe imports reached record levels during global glut
- Middle East & North Africa – LNG imports continue to fall
LNG regas infrastructure
- FSRUs – conversions back in favour
- China – Northern China remains stretched with high utilisation rate
- Rest of Asia
- Europe - Germany looks to LNG imports for diversification
LNG shipping
LNG corporate and contracts
LNG: a decade in review