FxWirePro: Key highlights from Shell LNG outlook

Shell has published its Global LNG outlook for 2018, here are the key highlights from that report,

Demand:

• According to Shell, the global energy demand is set to increase by 30 percent between 2015 and 2040 and gas is expected to make up over 40 percent of this growth.
• Expect more gas pipelines to be erected over the mentioned period and the total length of the world’s natural gas pipelines would be approximately eight times the distance between the Earth and the Moon.
• LNG is likely to be the single most vital part of global gas supplies as Shell predicts that almost a third of the total gas demand over the next couple of decades will be met by LNG.
• In 2017, China became the second largest importer of LNG, after Japan. LNG imports grew by 30 percent more than initially estimated.

Policy:

•  Shell expects policies remain favorable for the gas industry as the world steadily moves to reduce carbon footprints.
• More than 10 countries in Europe announced phase-out plans for coal-based power generation.
• South Korea’s 8th basic energy plan prioritizes renewables and gas.
• Natural gas even received endorsements from G20 nations.  

Supply:

• In 2017, Australia, Africa, and the United States dominated the increase in LNG exports.
• In 2017, LNG trade reached 293 million tons. However, Shell suggests that without new investments, the supply-demand gap could reach as high as 275 million tons by 2035.