LNG market: between Asia and Europe

Despite the growth in the demand on the market of liquefied natural gas (LNG), the start of a series of LNG projects in Australia and the United States has led to oversupply. So, Australia is going to produce 44 million tons of LNG in 2018, and the United States expects to offer its customers more than 50 million tons of liquefied gas. This situation leads to the fact that buyers will dictate conditions on the gas market in the coming years. Will Russia be able to find its place on this LNG market and whether it has a competitive advantage?

The demand growth, the supply growth

According to forecast of Anglo-Dutch company Shell, by 2030 the global LNG market will grow from 250 million tons in 2015 to 460 million tons. The demand for liquefied natural gas will grow on average by 5% per year. Such dynamics of the global LNG consumption is caused by the needs of China in clean energy and the need to create new generating capacities in the countries of Southeast Asia and Latin America. The demand will also be stimulated by population growth in the Middle East and the transition to gas on the European transport market.