Global LNG trade up 6% in 2021: Shell
Global major Shell, in its annual LNG outlook published February 21, said worldwide trade in LNG grew by 6% in 2021 amidst emerging recovery from the Covid pandemic and volatile energy markets in Europe and Asia towards the end of the year.
Global LNG trade rose to 380mn metric tons on the year, according to the Shell LNG Outlook 2022, led by China and South Korea, which boosted LNG imports by 12mn mt and 6mn mt, respectively. China became the world’s largest LNG importer in 2021, with net imports of 79mn mt, followed by Japan at about 74mn mt and South Korea at about 46mn mt.
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Australia was the top LNG exporter, with deliveries for the year of just under 80mn mt, followed closely by Qatar and the US, at about 76mn mt and 74mn mt, respectively. The US, however, surpassed both to reach the top of the table in December, and continued that dominance into January this year.
Rising LNG demand in 2021, combined with supply constraints, kept gas and LNG prices volatile for much of the year, Shell said, peaking at record levels in October when Europe, with historically low storage levels, struggled to secure enough LNG to meet expected winter demand.
“Last year showed just how crucial gas and LNG are in providing communities around the world with energy they need as they strived to get back on track following the difficulties caused by the Covid-19 pandemic,” said Wael Sawan, Integrated Gas, Renewables and Energy Solutions director at Shell. “As countries develop lower-carbon energy systems and pursue net-zero emissions goals, focusing on cleaner forms of gas and decarbonisation measures will help LNG to remain a reliable and flexible energy source for decades to come.”
Global LNG demand is expected to cross 700mn mt/year by 2040, a 90% increase from 2021, the outlook said. But liquefaction capacity will fail to keep pace, opening a small supply-demand gap starting in 2025 – when the Shell-led LNG Canada project in Canada is expected to produce its first cargoes – and rising to as much as 200mn mt/year by 2040.