Business Data
40bcm Of Demand Tied To LNG-to-Power
BMI View: LNG-to-power solutions will continue to add new markets and grow demand for LNG over the next 10 years. Only some of the proposed projects will be realised, but many that do also have scalability to increase imports. We envisage as much as 40bcm of demand creation , with 2019 and 2020 appearing to be strong years for growth. The pending addition of new LNG liquefaction capacity in 2018 and 2019, predominantly from Australia and the US, will weigh on LNG prices as supply become more plentiful ( see ' Singapore SLInG: Prices To Bottom In 2019, September 29). FSRUs, and particularly those linked to power projects, have played a critical role in soaking up much of the new additions over 2016 and 2017, and will drive demand for LNG over the coming years ( see 'Power Generation, FSRUs To Underpin EM LNG Growth ' , September 21). However, depending on the momentum behind a number of proposed projects, the expected glut in the LNG market may be less intense than anticipated, and could drive the need for more liquefaction capacity from the early 2020s, investments for which would be needed now. We have identified 21 possible LNG-to-power projects across 17 countries, that could materialise over the 2017-2023 period, adding as much as 40bcm (31mn tpa) of new LNG demand by 2023. According to planned start dates, 2019 and 2020 appear to offer the strongest upside to demand.
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