Global LNG demand will continue to grow

Sinochem News.

Recently, with the surge in fuel demand, LNG producers around the world are investing billions of dollars to increase production capacity

Another impact of the recent increase in natural gas prices will be the surge in long-term contracts

According to today's oil price report on October 27, Cheniere Energy recently announced plans to invest 7 billion US dollars to expand its Sabine Pass liquefaction plant in response to the surge in demand for this ultra-cold fuel in Asia

Morgan Stanley said earlier this week that it expects LNG demand to grow by 25% to 50% by 2030

Reuters reported that after predicting the long-term price, comparing it with the spot price of US$56 per million Btu in Asia earlier this month will explain why the CEO of Petronet believes that the market will shift to long-term contracts.

It is worth mentioning that for long-term contracts, there needs to be sufficient supply

The British "Financial Times" quoted Cheniere Energy's chief commercial officer as saying, "We believe that Asia will be the growth driver of our industry's demand for LNG in the coming decades

　　Cheniere's US$7 billion capacity expansion project is one of the new round of LNG projects that started in Europe and quickly spread to Asia under the energy crisis

　　Matt Schatzman, Chief Executive Officer of the Ten-Year Plan, said, “Market conditions in Europe and around the world confirm that the market’s demand for LNG far exceeds the available supply”

　　At the same time, the world’s largest LNG exporter stated earlier this month that its output has reached its limit as demand continues to exceed supply

　　By the way, Qatar is working hard to substantially increase its LNG production capacity

　　For LNG producers, the situation seems particularly good, and the situation is improving as buyers are increasingly willing to lock in lower long-term contract rates to reduce the risk of future price spikes

　　According to the IEA, if the world is to achieve net zero emissions by 2050, natural gas demand must peak between 2025 and 2030 and begin to decline in 2030

　　Morgan Stanley analysts said, “Contrary to investor expectations, in the initial stage of the energy transition, the world will need more LNG

　　This is the European strategy of shifting from coal to natural gas