According to Wood Mackenzie Ltd, Europe is set to be the key destination for liquefied natural gas supplies from the U.S. after prices fell in Asia, the world’s biggest consumer of the fuel says a report in Bloomberg.
The U.S. is forecast to ship about 55 percent of its total LNG production, or 32 million metric tons a year, to Europe by 2020, according to Alex Munton, the Houston-based principal analyst for Americas LNG at Wood Mackenzie. That’s because Europe is so close, has ample import capacity and liquid markets, and now has prices nearer to those in Asia.
Wood Mackenzie’s Chong Zhi Xin says: “In 2015, weak market environment forced companies to adjust strategies and tactics. Sellers started to look further afield to emerging markets in the Middle East and Africa and new opportunities in Asia, while buyers exercised more caution in contracting.”
Global LNG production remained high in 2015, reaching 250 million tons per year rising 4 million tons compared to 2014, according to Wood Mackenzie.
As global energy demand rises, the market for liquefied natural gas (LNG) continues to expand. Set to increase by 50% between 2015 and 2020, the LNG market is one of the fastest growing in the world. This spectacular growth is transforming the market, with many new companies entering the sector and changing the industry landscape.