Global LNG market sees growth up to 2019

25 November 2015



The US shale gas revolution is driving a remarkable restructuring of the global LNG market. With new market insight from GlobalData, Gas Technology Review examines the results of this growing demand for natural gas, including increases in liquefaction and regasification capacities worldwide.


Of the 67 liquefaction projects proposed to commence by 2019, 32 are expected to commence operations in North America. Lower costs of natural gas production and higher international LNG prices have prompted US companies to seek LNG exports. The US companies will also have cost benefits; they can leverage existing LNG import infrastructure such as storage and pipelines for exports.

Australian companies are also expected to spend heavily to capitalise on the growing global natural gas demand. Australian companies could collectively spend around $125 billion to increase their liquefaction capacities to 104t a year (t/y) by 2019. The Galdstone project, with a processing capacity of 7.8t/y, became active in September 2015, but project delays, increasing construction costs and competition from US projects is expected lower the competitiveness of LNG projects in the country.

American companies such as Orca LNG, United LNG and Cheniere Energy will dominate global liquefaction capacity additions in the world. Orca LNG and United LNG will each add 24t/y of liquefaction capacity while Cheniere Energy will add a capacity of 21t/y by 2019. On the other hand, Gazprom will lead capex spending on the proposed liquefaction terminals in the world: the company is expected to add a total liquefaction capacity of 21t/y by 2019, with a total capex of $33 billion.

Regasification capacity growth

On the regasification front, the global capacity is expected to increase to 59tcf by 2019, a substantial increase of 56.6%. Asia is going to underpin this growth with the addition of 60 regasification terminals and a total increase in capacity of 10tcf by 2019.

Producers will need to drive down the costs of their projects, and buyers will need to keep an open mind that low prices today won’t last if long-term supply does not keep up with demand. 

In Europe, a total of 17 countries are expected to add regasification capacity, mainly to decrease their reliance on the Russian gas imports. Two regasification projects - Finngulf in Finland and Canatxx in the UK - have been cancelled in the last quarter.

The Middle East also has major new regasification terminals slated to come online by 2019, including the Fujairah terminals and Fujairah floating terminals in the UAE. In total, there is $2 billion in capital expenditure planned for projects to add 1.3tcf of capacity in the region. Africa - an emerging LNG import market - is expected to witness the start of two regasification terminals in Ghana and Egypt.

CNOOC will add the highest regasification capacity in the world than any other company over the next four years. The company will add about 1.5tcf of regasification capacity with a total capex of $6 billion by 2019. Hiranandani Group and PT Pertamina (Persero) will add the next two highest regasification capacities in the world, each adding 584bcf by 2019.

Key highlights in the global LNG industry

  • The global LNG industry is poised for substantial growth over the next four years as North America enters the LNG export market, while Asia will continue to increase its share of LNG imports.
  • Booming unconventional gas production has transformed the US from LNG importer to exporter. North American liquefaction and regasification capacities have increased marginally in the last quarter.
  • As a consequence of low natural gas prices in the US, the Port Dolphin floating regasification project was cancelled in the country.
  • Australia is adding substantial liquefaction capacity by 2019 through conventional and unconventional projects. The 7.8t/y Galdstone project began commercial operations in September 2015.
  • International sanctions have prompted Russia to look towards eastern markets for gas exports. Monetisation of massive gas discoveries in Nigeria and Mozambique will drive liquefaction growth in Africa. There is no change in regasification capacity growth in the region.
  • Qatar Petroleum currently has the highest liquefaction capacity in the world and will remain the global leader over the next four years. The liquefaction capacity of Shell had decreased marginally, while the capacity of Petronas had increased by 3.6t/y in the past few months.
  • Increasing demand for natural gas in China and India will drive regasification capacity growth in Asia. A combined $23 billion has been proposed to increase regasification capacity by almost 7tcf in the two countries.
  • Europe's efforts to decrease reliance on the Russian gas imports will drive regasification growth in the region. Italy is expected to have one of the highest regasification capacities being built and the highest capex in the region. However, local opposition and permitting issues resulted in the cancellation of the Canatxx regasification project in the UK.
  • Korea Gas Corporation has the highest regasification capacity in the world and will remain the global leader in the next four years.

A growing demand for natural gas is sparking increases in liquefaction and regasification capacities worldwide.
Total liquefaction capacity by region (t/y).
Total liquefaction capacity by region (t/y).


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