Shell LNG Outlook 2018

The global LNG market has continued to defy expectations, growing by 29 million tonnes in 2017 according to Shell's latest LNG Outlook released today. The Shell LNG Outlook, now in its second year, highlights key trends in 2017 and focuses on future global supply and demand.

Japan remained the world’s largest LNG importer in 2017, while China moved into second place as Chinese imports surged past South Korea’s. Total demand for LNG in China reached 38 million tonnes, a result of continued economic growth and policies to reduce local air pollution through coal-to-gas switching.

Based on current demand projections, Shell sees potential for a supply shortage developing in the mid-2020s, unless new LNG production project commitments are made soon.

The mismatch in requirements between buyers and suppliers is growing according to the report. Most suppliers still seek long-term LNG sales to secure financing. But LNG buyers increasingly want shorter, smaller and more flexible contracts so they can better compete in their own downstream power and gas markets.

This mismatch needs to be resolved to enable LNG project developers to make final investment decisions that are needed to ensure there is enough future supply of this cleaner-burning fuel for the world economy. The Shell LNG Outlook 2018 can be downloaded in PDF (4 MB) format here. The Shell LNG Outlook 2018 Overview can be downloaded in PDF (320 kB) format here.