Oil & Gas Product News Logo

Global LNG trade has fifth consecutive record year as IGU releases 2019 report

Liquefied Natural Gas (LNG) trade set a record for the fifth consecutive year in 2018, reaching 316.5 million tonnes – a 9.8% increase on 2017.
Liquefied Natural Gas (LNG) trade set a record for the fifth consecutive year in 2018, reaching 316.5 million tonnes – a 9.8% increase on 2017.

Company info

164 Heward Avenue
Toronto, ON
CA, M4M 2T7

Website:
igu.org

Read more

The International Gas Union (IGU) has released its 2019 World LNG Report - an annual, in-depth analysis of the current state of the Global LNG Industry over the previous 12 months.

Examining a range of metrics, the latest report illustrates that 2018 was another strong year for LNG, further reinforcing its role in expanding access to natural gas as a vital global energy source. Global LNG trade set a record for the fifth consecutive year, reaching 316.5 million tonnes (MT). This marks a significant increase of 28.2 MT, or 9.8%, from 2017 - the third-largest annual increase ever (behind only 2010 and 2017).

Over 99 MT of this number was accounted for by non-long-term trade, which equates to a 14.5 MT increase on 2017 and makes up 31% of total LNG trade. This marks the second year in a row in which the non-long-term market has substantially expanded, due to growing LNG supply and demand elasticity.

The overall growth in global LNG trade can be attributed primarily to increases in LNG supply - coming from higher production at new liquefaction plants. The single greatest increase in LNG exports occurred in Australia (+12.2 MT), owing to new trains coming on-stream and higher utilization at existing facilities. Other significant contributors to LNG supply were the United States and Russia, which added 8.2 and 7.8 MT respectively, across new and existing trains. Despite increases in these markets, the Asia-Pacific region continues to be the leading LNG-exporting region, supplying 38.4% of total exports (121.6 MT). This share is consistent with its share of global exports since 2016.

Increasing demand in 2018 also played an essential role as a key driver of growth in global LNG trade. The additions of Bangladesh and Panama as the two newest importing markets in the last year brought the total number of importing markets to 37. Asia remained the driver of international LNG demand growth, with China and South Korea returning as the key sources of LNG import demand in 2018, with growth of 15.8 and 6.4 MT respectively. Together, China and South Korea accounted for nearly 80% of the increase in net trade. Other key markets that drove global LNG growth included India and Pakistan, while European LNG imports too increased year on year for the fourth consecutive year, by 3.4 MT. This increase occurred despite net negative incremental growth in these markets through the first three quarters of the year, with the fourth quarter of the year making up for the losses, as it was the second strongest quarter ever for net imports into the region.

Between January 2018 and February 2019, an additional 36.2 MT of liquefaction capacity was added to the global nominal capacity - equating to a global total of 393 MTPA. This growth in liquefaction capacity is expected to continue, with 101.3 MTPA of capacity under construction or sanctioned, as of February 2019.

More from Industry News

Woodfibre LNG signs agreement with foundation customer

Pacific Oil & Gas Limited wholly-owned subsidiary Woodfibre LNG has signed a binding LNG Sales and Purchase Agreement (SPA) with BP Gas Marketing Limited, a wholly-owned indirect subsidiary of BP Plc, for the delivery of liquefied natural gas (LNG) from PO&G's Woodfibre LNG export facility in Squamish, British Columbia. 

Metso introduces new mine tailings management approach

Water conservation, efficient tailings management and responsible mine reclamation are becoming increasingly important for mines to ensure their license to operate. Spearheaded by the launch of the new Metso VPX filter for tailings dewatering, Metso introduces its comprehensive tailings management concept to enable and support environmentally and economically sustainable mining.

NETZSCH celebrates 50th anniversary of North American operations

NETZSCH Pumps North America, LLC, experts in solutions designed specifically for difficult pumping applications, announces it is celebrating its 50th anniversary in business. As a mid-sized, family-owned German company, NETZSCH manufactures machinery and instrumentation with worldwide production, sales, and service. The global company began its North America operations as a one-person office 50 years ago, and has since grown to more than 180 employees, with over $75 M in revenue for its three North American business units, Analyzing & Testing; Grinding & Dispersing; and Pumps & Systems. NETZSCH marked the milestone year with a gala celebration, held May 11, 2019 at the historic SunnyBrook Ballroom in Pottstown, PA.

Stork Consortium awarded 4-year turnaround framework agreement by Ecopetrol in Colombia

Fluor Corporation announced that Stork, part of Fluor's Diversified Services segment, together with its consortium partners, was awarded a 4-year framework agreement for plant turnaround services by Ecopetrol S.A. for its Barrancabermeja and Cartagena refineries in Colombia. The Colombia-based consortium includes Stork as the international lead partner, Rampint as the local partner in Barrancabermeja and Servimant as the local partner in Cartagena. The agreement also includes two extension options for an additional two years each. Both refineries supply fuel to meet Colombia's national and export product needs. Fluor booked the undisclosed contract value in the second quarter of 2019. 

Three ways electrical technology improves oil and gas plant reliability and availability

As electrical machinery evolves and matures at an exponential pace - alongside increasingly available power grids to supply them - the oil and gas (O&G) landscape is witnessing major change. This is a positive shift as electrification not only meets ever tougher demands for lower global emissions, but also ticks boxes for improving O&G's availability and reliability. What's more, alongside greater productivity for operators, it adds up to greater safety for plant workers and the wider public too.

free-paper-airplane

Get our newsletter

Learn more

Pembina partners with Ducks Unlimited for prairie wetlands

A landmark gift from Pembina Pipeline Corporation is ensuring working landscapes across the Canadian Prairies also work for conservation. Its $1-million investment in Ducks Unlimited Canada's (DUC) Revolving Land Conservation Program will protect approximately 2,000 acres (809 hectares) of important wetland habitat. At the same time, communities across Alberta and Saskatchewan will benefit from a host of environmental benefits. The joint announcement was made and celebrated by Pembina and DUC at a ceremony held at one of DUC's conservation project sites located east of Camrose. 

CIRCOR initiative targets integrated solutions for oil and gas

CIRCOR Industrial Valves, a leader in designing and manufacturing flow control technology, features its commitment to ONE CIRCOR, ONE Solution, an initiative to provide the right solution for each customer by effectively drawing on the technical capabilities of CIRCOR's trusted brands, like Leslie Controls, Spence, RTK, Nicholson, and more. With a broad range of products to match to requirements and the technical expertise to design optimized systems for specific customer applications, CIRCOR engineers and provides integrated critical steam solutions for process industry, oil and gas, district energy and power systems.

Encana provides interim update on strength of operations

Encana Corporation has provided an update on its share buyback program and disclosed its intention to execute a substantial issuer bid (SIB) to fulfill its previously announced 2019 share buyback. In addition, the Company signed an agreement to exit China, strengthened its production outlook for the second quarter of 2019 and reiterated its original capital investment plan.

Oil sands forecast shows production increase but lower annual growth: IHS

Canadian oil sands production is set to enter a period of slower annual production growth compared to previous years. Nevertheless, total production is expected to reach nearly four million barrels per day (mbd) by 2030 - nearly one million more than today, according to a new 10-year production forecast by business information provider IHS Markit.

free-magazine-subscription

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more

CAPP says Canada can play a key role on world stage if Canadians 'vote for energy'

Canada's next federal government has an opportunity to help define a strategic, long-term vision for the growth of Canada's oil and natural gas sector, one that promotes jobs and a healthy economy for all Canadians, while being part of the solution to meet growing global energy demand with responsibly developed energy, according to the Canadian Association of Petroleum Producers (CAPP).

nVent introduces new standardized design for mineral insulated heating units

nVent Electric plc has introduced a new standardized design for its nVent RAYCHEM Mineral Insulated (MI) heating units; industry-leading equipment designed to provide superior freeze protection and process temperature maintenance for high-power, high-exposure industrial heat-tracing applications. The new heating units ensure greater operational reliability and corrosion resistance in harsh environments.

AltaGas celebrates grand opening and first cargo from Ridley Island propane terminal

AltaGas Ltd. has celebrated the grand opening of its Ridley Island Propane Export Terminal (RIPET), located in Prince Rupert, British Columbia - the first marine export facility for propane in Canada. The facility began introducing propane feedstock in mid-April, and the first shipment departed the terminal on May 23, 2019 bound for Asia.

Capital spending shifts and increased free cash flow generation included in Husky five-year plan update

With a focus on generating increased free cash flow, the updated Husky Energy five-year plan shows reduced capital spending to achieve an annual average of $3.15 billion for 2019 - 2023 versus the previously planned 2018 - 2022 annual average of $3.5 billion. Total capital spending over the 2019 - 2023 five-year period is reduced by about $1.7 billion, with total free cash flow before dividends expected to reach $8.7 billion at a flat $60 US WTI planning price.

Oil & gas leaders look for cost reduction and efficiency gains

Speaking at the closing of the AIPN 2019 International Petroleum Summit (IPS), Ryan Lance, Chairman and Chief Executive Officer of ConocoPhillips spoke about his company's "hyper focus on returns" highlighting that the "returns the energy industry has generated have been negative over the last 10 to 15 years. Investors are frustrated. We chase the cycle up only, they have to chase the cycle back down on the back side. We recognize it's a mature industry growing at 1 percent per year. There's a lot of companies, some tremendous companies ... that have dramatic growth profiles. But when they put a hundred percent of their cash flow back into the business, don't pay the shareholder a fair amount of money, they're actually destroying value in the long run.

free-paper-airplane

Get our newsletter

Learn more

Quest carbon capture storage facility hits 4 million tonne milestone

In less than four years, the Quest carbon capture and storage (CCS) facility has captured and safely stored four million tonnes of CO2, ahead of schedule and at a lower cost than anticipated. Four million tonnes of CO2 is equal to the annual emissions from about one million cars. Quest has now stored underground the most CO2 of any onshore CCS facility in the world with dedicated geological storage.

Canadian energy future to be propelled by technological innovation

Over the past decade, uncertainty has been constant in Canada's oil and gas industry, brought on in part by unknown investment outlooks, lack of market access, and a complex regulatory process. According to PwC Canada's 2019 Energy Visions report, there are two main factors that could catalyze change for the oil and gas industry: a national energy strategy as well as further technological innovation. 

Pacific Oil & Gas Ltd. to acquire Canbriam Energy Inc.

Canbriam Energy Inc. and Pacific Oil and Gas Ltd. have announced the signing of definitive documents for the acquisition by PO&G of all of the issued and outstanding shares of Canbriam for cash consideration. Canbriam's Board of Directors has provided unanimous approval of the Transaction, and all of the officers, directors and significant shareholders of Canbriam representing greater than 90 percent of the outstanding Canbriam shares have entered into support and lock-up agreements in favor of the Transaction.

Fuelled engaged by PwC to facilitate large energy asset disposition

Fuelled, Canada's leading energy equipment marketplace, announced an agreement with PricewaterhouseCoopers Inc., LIT, in its capacity as the court appointed Receiver of Trident Exploration.  This agreement will allow Fuelled to act as the exclusive sales agent for Trident's surplus oil and gas equipment. Fuelled is representing the Receiver on the divestiture of approximately 250 pieces of production equipment located in Western Canada. "We look forward to working closely with the Receiver on this engagement while we continue to deliver an unparalleled customer experience to our online buyers" said Austin Fraser, VP of Fuelled.  "Trident's equipment includes gas compression, separation, dehydration, refrigeration, MCC's and other gas processing equipment that we believe there is strong demand for from our customers domestically as well as in the US and Overseas"

IGU releases 2019 Wholesale Gas Price Survey

The International Gas Union (IGU) released its 2019 Wholesale Gas Price Survey at Flame 2019. The survey is the eleventh to be undertaken in a series that began in 2007. The eleven surveys examine the dramatic changes in wholesale price formation mechanisms during a period of key developments in the global gas market. 

free-magazine-subscription

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more