Shell LNG Outlook 2023

Shell released their LNG Outlook 2023 today.  The Shell LNG Outlook 2023 is available in PDF format here.

Key Points from the Shell LNG Outlook 2023:

• European countries, including the UK, imported 121 million tonnes of LNG in 2022, an increase of 60% compared to 2021.
• A 15 million tonne fall in Chinese imports combined with reduced imports by South Asian buyers helped European countries to secure enough gas and avoid shortages.
• Europe’s rapidly rising appetite for LNG pushed prices to record highs and generated volatility in energy markets around the world.
• China is evolving from being a rapidly growing import market to playing a more flexible role with an increased ability to balance the global LNG market.
• High global LNG prices led to a drop in LNG imports in South Asia, with Pakistan and Bangladesh importing more fuel oil to minimise power supply shortages and India using more coal.
• Total global trade in LNG reached 397 million tonnes in 2022. Industry forecasts expect LNG demand to reach 650 to over 700 million tonnes a year by 2040.
• More investment in liquefaction projects is required to avoid a supply-demand gap that is expected to emerge by the late 2020s.
• Growing industry focus on the development and deployment of decarbonized gases – including renewable natural gas, synthetic natural gas, hydrogen and ammonia – to deliver more sustainable energy security in the future.