China’s 2018 LNG imports surge to recordChina, the world’s second-largest importer of LNG, is continuing to boost its imports of the chilled fuel and has reached a new record high as it is pursuing its strategy for cleaner air.China imported 53.7 million tonnes of LNG in 2018, a rise of almost 38 percent compared to 2017 when China has surpassed South Korea as the world’s second largest LNG importer.
The country received almost 10 million tonnes of LNG more than South Korea that
imported a record 44 million tonnes of the chilled fuel last year.
In December alone, Chinese LNG imports rose 25.9 percent to 6.29 million tonnes, logging a record for monthly LNG imports.
China remains second largest LNG buyerAccording to
Reuters, China has held onto its position as the world’s second largest importer of LNG. Japan still remains in first place, and South Korea in third after it was overtaken by China in 2017.
China’s LNG imports increased by 25% in December 2018, compared to December 2017. This activity set a new monthly record of 6.29 million t, beating the previous record of 5.99 million t which was recorded in November 2018.
Across 2018 as whole, China’s imports grew 41% from 2017 levels to reach a total 53.78 million t – another record.
China’s 2018 LNG buying surge is widely credited as being fuelled by concerns regarding winter fuel shortages. The Chinese government has continued to back a large domestic shift from coal to gas heating, however in recent weeks buying has slowed down as winter temperatures have been significantly milder than expected.
Looking ahead into 2019, IHS Markit and Wood Mackenzie are reportedly forecasting slower growth at around 15 to 20%, as the Chinese government is expected to scale down its coal to gas transition scheme to a more moderate level. Evidence of this is already becoming evident as the country begins to
re-sell surplus cargoes, rather than stockpile greater quantities as emergency supplies.
‘Global LNG Market 2019 – 2023’ forecast report released by TechnavioThe global LNG market research report by Technavio predicts the market to post a CAGR of around 6% during the period 2019 – 2023.
A key driver for the global LNG market is the increase in LNG production. Natural gas is one of the fastest growing fossil fuels due to the increase in the global supply of coalbed methane, shale gas, and tight gas.
Hence, the global oil and gas industry will witness a significant increase in unconventional oil and gas resources. According to the US EIA, shale gas production in the US increased from 1293 billion ft
3 in 2007 to 18 589 billion ft
3 in 2017.
The increase in natural gas production has resulted in a rise in the production of LNG that will boost the growth of the global LNG market during the forecast period.
As per Technavio, the growing demand for LNG bunkering will have a positive impact on the market and contribute to its growth significantly over the forecast period.
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