LNG trade value to grow by 50%

Following a steep drop in 2020, the value of global LNG is set to grow by 50% this year to a record of close to $165 billion.

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LNG has been amongst the most resilient energy commodities in 2020, with trade volumes growing by ~1% despite global gas consumption declining by almost 2%.

In contrast, the value of LNG dropped by ~25% as spot prices both in Asia and Europe fell to record lows in the first half of the year, while oil-indexed prices have been depressed to multi-year lows in the second half of the year.

In 2021, LNG trade is expected to expand by 4% yoy in volumetric terms to 500 bcm, largely driven by the recovery in Asia and supported by higher supply from the US.

Together with the surge in spot prices (almost tripling) and the firming up of oil-indexed prices the value of LNG trade is expected to increase by over 50% yoy to a record of $165 billion.

Of course downside risks in prices should be considered, even though market fundamentals have been tightening up for this summer…

What is your view? How will the value of LNG evolve? What does it mean for importers? And what are the prospects for project developers?

Source: Greg Molnar

See original post by Greg at LinkedIn.