Global LNG trade grew 6% in 2021, says Shell

Global trade in liquefied natural gas (LNG) increased 6 percent to 380 million tonnes during the year, said Shell on Monday in its latest LNG Outlook.

Shell said that the global LNG demand is expected to cross 700 million tonnes a year by 2040, which is a 90 percent increase on 2021 demand. The energy major said that the Asian market is expected to consume the majority of this growth as domestic gas production is declining. 

Shell said that prices reached record levels in October 2021 as Europe had to secure LNG cargoes to meet expected winter gas demand.

“Last year showed just how crucial gas and LNG are in providing communities around the world with energy they need as they strived to get back on track following the difficulties caused by the COVID-19 pandemic,” said Wael Sawan, Integrated Gas, Renewables and Energy Solutions Director at Shell.

China and South Korea led the growth in LNG demand in 2021, Shell wrote. The company said China increased its LNG imports by 12 million tonnes to 79 million tonnes, exceeding Japan to become the world’s largest LNG importer instead.

Chinese LNG buyers signed long-term contracts for more than 20 million tonnes a year, during the last year, Shell wrote. These contracts shows that ongoing role for LNG in coal-to-gas switching in powering within China.

Shell said that LNG exports grew in 2021 “despite a number of unexpected outages that dented LNG available for delivery”.

The USA alone exported with an increase of 24 million tonnes from previous years. It is expected to become the world’s largest LNG exporter in 2022.

Brazil, on the other hand, tripled imports of LNG during the last year to over 7 million tonnes to be used in renewable energy generation as dry weather led to weaker hydropower generation.