Shell LNG Outlook Indicates Potential Supply Shortage

The global liquefied natural gas (LNG) market has continued to defy expectations, growing by 29 million tonnes in 2017, according to Shell’s latest LNG Outlook.

Based on current demand projections, Shell sees potential for a supply shortage developing in the mid-2020s, unless new LNG production project commitments are made soon, according to the outlook released on the companies website.

Read the Shell LNG Outlook in full:


The Shell LNG Outlook, now in its second year, highlights key trends in 2017 and focuses on future global supply and demand.
It finds that, since the start of the century, the number of countries importing LNG has quadrupled, while the number of countries supplying LNG has almost doubled. LNG trade increased from 100 million tonnes in 2000 to nearly 300 million tonnes in 2017.

The mismatch in requirements between buyers and suppliers is growing, the outlook revealed, noting that most suppliers still seek long-term LNG sales to secure financing.
“But LNG buyers increasingly want shorter, smaller and more flexible contracts so they can better compete in their own downstream power and gas markets,” it noted.

“This mismatch needs to be resolved to enable LNG project developers to make final investment decisions that are needed to ensure there is enough future supply of this cleaner-burning fuel for the world economy,” the outlook pointed out.


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