Demand for global liquefied natural gas (LNG) was 86 million tonnes (mt) in the second quarter of 2019, compared with 74 mt in the second quarter of 2018, an increase of 16%, mentioned GasLog Partners, the international owner, and operator of LNG carriers.
The Monaco-headquartered firm cited a Poten report which says that higher European imports (up 110% year-on-year) accounted for most of the growth, whereas demand from Northeast Asia (Japan, China, South Korea, and Taiwan) was flat year-on-year.
Natural gas costs had been at multi-year lows in the second quarter of 2019 as the leveling off in demand growth from crucial LNG consumers in Northeast Asia coupled with high inventories and new LNG supply lowered LNG prices in Asia and Europe.
LNG demand for 2019 is calculated at 351 mt over the globe, a rise of over 37 mt, or 12%, over 2018, following Wood Mackenzie.
Global LNG supply totaled 87 mt within the second quarter of 2019, an increase of 13 mt or 17% over the second quarter of 2018, principally pushed by new provide additions within the U.S., Australia, and Russia, based on Poten.
Wood Mackenzie estimates that 2019 supply can be 365 mt, or 38 mt (12%), more significant year-on-year as 2018’s provide additions proceed to ramp up production and new initiatives begin production within the U.S. and Australia.
We expect multi-month and multi-year chartering exercise and shipping rates to extend from present levels throughout the second half of 2019 and into 2020. The magnitude and period depend on the tempo and location of demand progress, the continued ramp-up in new LNG supply additions and cooling and heating demand during the Northern Hemisphere summer and winter, respectively, Wood Mackenzie mentioned.