Ready to climb the LNG wall? global LNG liquefaction capacity is set to expand by over 36% (or 220 bcm) by 2030, as LNG FIDs gather pace and projects target start-ups in the second half of the decade.
While the current global gas market remains tight, with only a handful projects coming online in 2023 and 2024, this could easily change in the second half of the decade, with the United States and Qatar leading a new wave of LNG capacity expansions.
Based on project schedules, a record of 170 bcm of new liquefaction capacity could be added between 2025-28, which would significantly ease global market fundamentals and strengthen gas supply security.
These numbers don’t include Russia’s Arctic LNG 2 Train 2&3 and Mozambique LNG is also excluded for the time being. if these projects are considered the total LNG capacity additions would be over 250 bcm.
What is your view? could we see a global gas glut in the second half of the decade? how this outlook impacts LNG FIDs this year? could we see higher unit costs as service companies’ rates go up?
Source: Greg Molnar