LNG demand steady, set for growth, say s Shell

NEW DELHI: The global liquefied natural gas (LNG) trade increased to 360 million tonnes in 2020, despite the unprecedented volatility caused by the Covid-19 pandemic which resulted in lockdowns around the world, according to Shell's latest annual LNG Outlook published on Thursday.

Though marginal, the increase in volume reflects the resilience and flexibility of the global LNG market in 2020, a year which saw losses to global GDP of several trillion dollars as economies large and small struggled to contain the Covid-19 outbreak. Demand in 2019 stood at 358 million tonnes.

Global LNG prices hit a record low early in the year but ended the 12-month period at a six-year high as demand in parts of Asia recovered and winter buying increased against tightened supply.

"LNG provided flexible energy which the world needed during the Covid-19 pandemic, demonstrating its resilience and ability to power people's lives in these unprecedented times," said Maarten Wetselaar, Integrated Gas, Renewables and Energy Solutions Director at Shell.

Natural gas emits between 45 per cent and 55 per cent fewer greenhouse gas emissions and less than one-tenth of the air pollutants than coal when used to generate electricity.

According to the report, China and India led the recovery in demand for LNG following the outbreak of the pandemic.

China increased its LNG imports by 7 million tonnes to 67 million tonnes, an 11 per cent increase for the year.

China's announcement of a target to become carbonneutral by 2060 is expected to continue driving up its LNG demand through the key role gas can play in decarbonising hard-to-abate sectors, namely buildings, heavy industry, shipping and heavy-duty road transport, the report said.