LNG global market is expected to grow twice by 2030

Michael Stoppard

IHS Energy Chief Gas Strategist

LNG market is a key emerging market; its volume in 2030 will increase two-fold. Competition for new niches in this market is huge among US, Canada, Africa and other manufacturers. Russia entered this competition with «Yamal LNG» project by contracting its volumes and other players are interested to join.

Of course, the competitiveness of Russian LNG projects – Yamal LNG and the planned Far East projects – will depend on the cost of the produced liquefied gas and, to a larger extent, on the cost of delivery to customers. In this regard, new Russian projects are quite competitive compared to, for example, the Australian ones.
LNG projects implemented in Australia stand apart at the global market. Their «First generation» is at the advanced construction stage already. The problem is in higher costs compared to other regions, so the operating in Australia companies are trying somehow to reduce the project costs. Such projects, called brownfields, will be successfully implemented. Situation with others is less clear including the implementation terms.