Markets: LNG market
According to Andy Flower, an energy consultant, the global LNG market would maintain an average 12% annual growth until 2012 but should see a shortfall of about 120 million tonnes by 2020. Global LNG trade fell last year for the first time since 1981. Nearly half of the additional production expected between 2009 and 2012 (95 million tonnes) will be in Qatar. Russia will add about 9.6 million tonnes and Algeria about 9.2 million tonnes. Flower said forecasts beyond 2012 were difficult but estimated that the global market might grow by 5% between 2013 and 2020. About 270 million tonnes per year new capacity is planned, 70% of which will be in Australia, Nigeria, Iran and Russia, but these countries need to address environmental and other issues before launching new facilities. With an extra supply of about 25 million tonnes this year, prices could drop if there is insufficient growth in the market.