Global LNG demand to surge in 2024, boosted by China's return as major buyer
Date
2/28/2024 7:38:35 AM
(MENAFN) In a recent development, a Total Energies executive affirmed on Wednesday that the global demand for liquefied natural gas (LNG) is poised to experience growth in 2024. This positive outlook is attributed primarily to China's resurgence as the largest buyer in the LNG market, coupled with escalating gas consumption trends in Europe. Speaking at the Gas Industry Conference, Thomas Morris, Senior Vice President of Exploration and Production for the Asia-Pacific region, underscored the ongoing expansion of LNG trade, particularly with China's reemergence as a significant player in the market. However, Morris emphasized that while demand levels are on the rise, they have yet to reach the peak observed in 2017.
Highlighting the significance of Europe as a burgeoning market for LNG, Morris noted sustained growth in demand within the region. Nonetheless, he cautioned that despite this burgeoning demand, the introduction of new LNG capacity is not expected in the immediate future. Consequently, this scenario is anticipated to exert continued pressure on prices and result in some degree of market volatility.
The preceding week witnessed spot LNG prices in Asia hitting their lowest levels in nearly three years, attributable to subdued demand across Asian and European markets. This downturn prompted LNG importers to ramp up spot purchases in response to the prevailing market conditions. Shamsiri Ibrahim, Vice President of Petronas LNG Marketing and Trade, echoed sentiments regarding the resurgence of trading activities spurred by lower prices. Ibrahim further highlighted China's proactive stance, signaling a willingness to escalate LNG purchases within the Asian market.
The remarks made at the conference underscore the evolving dynamics within the global LNG landscape, with China's renewed engagement and Europe's expanding demand shaping the trajectory of the market in the coming year.
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