Goldman Sachs: global supply of LNG to surge 80 percent in 6 years

(MENAFN) A comprehensive analysis has revealed a remarkable projection for the liquefied natural gas (LNG) market, foreseeing an 80 percent surge in global supply by 2030. This surge is primarily attributed to the emergence of new projects in Qatar and North America, as outlined in the latest report by Goldman Sachs. The anticipated increase in supply signals a promising solution to the ongoing energy crisis triggered by geopolitical events such as Russia's invasion of Ukraine.

Goldman Sachs, a prominent US-based financial services firm, emphasized the pivotal role of LNG investments, anticipating a notable uptick of over 50 percent by 2029. Michele Della Vigna, the head of natural resources research for Europe, the Middle East, and Africa at Goldman Sachs, underscored the dominance of US LNG in shaping future supply dynamics. He expressed confidence that this capacity expansion in LNG production would mitigate the energy shortages that have plagued global markets in recent years, particularly following European sanctions on Russian gas post-Ukraine invasion, consequently driving down natural gas prices across Europe and Asia.

Della Vigna highlighted the driving forces behind this surge, citing new projects in North America and Qatar as primary contributors. Notably, QatarEnergy's recent agreements signify a strategic push towards expanding its LNG footprint. In January, a partnership with US-based Execelerate Energy was forged to supply LNG to Bangladesh, followed by a significant deal with Petronet in February, securing a long-term supply to India. Furthermore, QatarEnergy's announcement of expanding LNG production in the North Field further solidifies its commitment to meeting growing global demand, with plans to add 16 million tonnes per annum (mtpa) to its existing capacity, reaching a total production capacity of 142 mtpa.

The collective efforts of key players in Qatar and North America are poised to reshape the LNG landscape, offering a glimmer of hope in addressing energy challenges and fostering greater stability in global markets.

MENAFN03062024000045015839ID1108288685