China, the only major growth market for LNG
Audio 01:58
CNOOC's head office in Beijing, China's largest importer of LNG (illustrative image).
STR / AFP
By: Claire Fages Follow
5 mins
The Asian giant will beat its record for imports of liquefied natural gas this year, against the grain of the rest of the world market.
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China appears to be "the" big growth market for liquefied natural gas at this time.
The volumes imported by LNG carrier from the United States, Qatar or Australia will even exceed in 2020 those of 2019: up to 67 million tons, according to traders interviewed by Reuters.
A jump of 10% compared to last year.
And an absolute record.
LNG to power the Guangdong industry
The world's second-largest economy is picking up again after the coronavirus epidemic, its industry is picking up the pace it had before the outbreak of Covid-19.
Guangdong, where the ceramic and glass industry is strongly encouraged to consume gas, rather than coal, is the top LNG importing province in China.
Demand from individuals is also very strong at the moment, with the onset of winter.
Fortunately, the price of liquefied natural gas destined for Asia has fallen below $ 5 per million Btu.
China is taking advantage of this, ordering more liquefied natural gas, less gas through pipelines.
Gas under pressure in Europe
In the rest of the world, on the contrary, the outlets for LNG are shrinking.
With the sudden slowdown in the economy caused by the coronavirus, total world consumption of gas, including LNG, is expected to fall by 3 to 4% in 2020. But it is in the medium and long term that the pandemic threatens the future of gas more than any other fossil fuel, estimates at S&P Global.
Postponement of orders for gas power stations in poor countries
?
With investors relying more and more on renewable energies in the West, gas is under pressure in Europe, even if it remains important.
As for the United States, the American election could constitute a turning point towards less carbon-intensive energy.
In developing countries, lack of financing risks delaying the acquisition of modern gas-fired power stations and extending the life of old coal-fired power stations.
Only India, the Middle East and China will drive the growth in gas demand over the next ten years.
But to what extent will China accept to be increasingly dependent on imports for its energy, when it has a powerful domestic industry in coal and renewables?
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