Demand For Liquefied Natural Gas Research Articles

Neighbourhood watch: the future of Asian LNG demand growth

The global liquefied natural gas (LNG) market has returned to a semblance of calm after a tumultuous 2022. European and Chinese demand is on the path to a slow recovery, while a nuclear power renaissance is underway in Japan and South Korea. This paper will detail our expectations for LNG demand growth, discuss demand drivers and market development opportunities for Australian LNG between the late 2020s to early 2030s. We see LNG demand in the region increasing from 260 Mtpa in 2023 to 479 Mtpa by 2035. The largest source of growth continues to be China with demand growing from 68 to 150 Mtpa, driven by uptake of LNG in the industrial and buildings sectors. We will also see South Asian demand growing from 33 to 100 Mtpa, and Southeast Asian demand from 24 to 103 Mtpa. Even in legacy markets of Japan and Korea where we see demand declining in this timeframe, we will see the emergence of new buyers and the impact of market liberalisation measures. The expiry of legacy contracts and the rising influence of US LNG is set to complicate market dynamics further. We discuss the challenges of the energy transition in a region that must balance emissions considerations with energy demand. We conclude that Australian projects with their proximate location and legacy relationships will remain an attractive proposition for Asian buyers. Ullage at existing LNG plants will support backfill economics, with decarbonisation measures taken under the Safeguard Mechanism demonstrating genuine emissions reduction action.

LNG as a bridge fuel in the transition to renewable energy: A global perspective

The global energy landscape stands at the precipice of transformation, with a growing consensus on the imperative to shift towards sustainable and renewable sources. Amidst this transition, Liquefied Natural Gas (LNG) emerges as a pivotal bridge fuel, strategically positioned to facilitate the journey towards renewable energy. This review encapsulates the essence of the comprehensive review, delving into the global perspective on LNG's role as a bridge fuel in the renewable energy transition. The narrative unfolds with a contextualization of the pressing need for a renewable energy transition, acknowledging the escalating environmental concerns and the imperative to reduce carbon footprints. It then seamlessly transitions to the concept of LNG as a bridge fuel, elucidating its capacity to serve as a cleaner alternative to traditional fossil fuels and its role in mitigating the challenges associated with intermittent renewable energy sources. Examining LNG's significance on a global scale, the review navigates through key aspects. It scrutinizes the environmental considerations and carbon reduction goals that position LNG as a pragmatic choice in the decarbonization journey. The analysis extends to policy factors influencing LNG demand, unraveling the intricate tapestry of governmental initiatives supporting its adoption and the dynamic interplay with renewable energy policies. Economic drivers take center stage in the exploration of LNG's role as a bridge fuel. The review investigates the cost competitiveness, market dynamics, and the industrial demand propelling its consumption. The comprehensive examination encompasses the expansion of global LNG production capacity, featuring key exporting nations and the technological innovations transforming LNG production processes. Regional dynamics further enrich the narrative, providing insights into LNG's impact on major economies across Asia-Pacific, Europe, and North America. The review culminates in a nuanced exploration of the geopolitical implications surrounding LNG trade, emphasizing its role in geopolitical events, trade agreements, and potential risks for stakeholders. In essence, this review serves as a guide to stakeholders, policymakers, and industry players navigating the complex interplay between LNG and renewable energy in the global quest for a sustainable energy future.

Fragile Equilibrium: Balancing LNG Trade and Market Risks

_ Liquefied natural gas (LNG) has been in global energy supply discussions for decades. Geopolitical tensions, however, recently elevated it from a bullet point to the entire conversation. Rarely does a day pass without mention of signed long-term LNG purchase agreements or LNG terminal construction projects advancing, one day making it possible to transport the curiously cold molecules across oceans to eventually power industries or heat homes. So strong are the fundamentals of the LNG industry, for example, that they were cited as a primary driver in the conversion of one of the largest pure-play US-listed shipping companies—Capital Product Partners led by Greek shipowner Evangelos Marinakis—to a pure-play LNG shipping company. In addition to changing its name to Capital New Energy Carriers, the partnership is selling off its modern fleet of 15 Neo-Panamax and Panamax container vessels. It will spend $3.13 billion to purchase 11 newbuild LNG carriers (LNGC). According to an announcement on 13 November, the first of the new vessels arrived in October 2023. The company already had seven LNG carriers in its fleet, with the remaining 10 newbuild vessels scheduled for delivery through March 2027. Jerry Kalogiratos, chief executive of Capital Product Partners, said the acquisition was transformative, noting that the partnership “expects our contracted revenues to increase by 87% percent to $3.1 billion, our revenue weighted charter duration to 7.2 years as of the closing date, and the average age of our LNG fleet to decrease to 3.2 years by the time all LNGCs have been delivered in 2027.” LNG Market Overview Events like the Russian invasion of Ukraine in February 2022 and the sudden loss of Russian pipeline gas supplies upended global energy markets. European buyers turned to LNG imports to meet demand. According to Wood Mackenzie, the current conflict in Israel/Gaza, possible pipeline sabotage in the Baltics, and the threat of fresh strike action at Australian LNG facilities all pushed spot prices up 35% through October. In a November blog post, Wood Mackenzie noted that a record 200 mtpa of new supply is under construction as “players bet big on Asia’s push to reduce its dependence on coal and Europe’s need to replace Russian gas.” While the proliferation of LNG projects is prompting concerns that there may be too much LNG on the market once these projects are completed, this is not the case, according to Wood Mackenzie. “Increased supply availability will bring prices down and boost demand growth,” said Gavin Thompson, vice chair of Europe, Middle East, and Africa, and Massimo Di Odoardo, vice president, gas and LNG research for Wood Mackenzie, noting that the market will need another 60 mtpa of new LNG by 2033. “Much will hinge on sustained economic growth, driving increased demand across emerging markets in Asia. China’s LNG demand will increase by 12% in 2023, and with 50 mtpa of LNG contracted over the past 2 years, imports will double by 2030. LNG demand in South and Southeast Asia will also grow twofold by this time,” they said.

Global Gas and LNG Markets: Demand, Supply Dynamics, and Implications for the Future

This article offers a comprehensive analysis of the global gas and liquefied natural gas (LNG) markets, discussing increasing demand, market volatility, supply and demand dynamics, and the implications of the Paris Agreement on natural gas demand. It emphasizes the potential impacts of decarbonization policies on the LNG market, including changes in energy composition, reduced LNG demand, increased costs, and the need for industry adaptation. The article also examines the future outlook, investment needs, and implications for global gas and LNG markets, highlighting the continued uptake of gas in heavy-duty transport and the importance of investment to avoid supply–demand gaps. Overall, the analysis provides insights into the complex dynamics and challenges facing the global gas and LNG markets in the context of energy transition and climate change mitigation efforts.

LNG Type C, Cylindrical Weight Design Limitation Based on Shipbuiding Facilities

Supporting climate change mitigation and sustainable energy due to its ability to reduce CO2, Liquefied Natural Gas (LNG) considered as promising alternative fuel. In a particular small market with LNG demand between 2,500 m3 to 7,500 m3, utilization of LNG type-C, cylindrical tanks are compatible to use in small-scale LNG carrier. In order to overcome these challenges, Indonesian industry need to design the tank’s volume and weight requirements.while also taking into account the capabilities of the shipbuilding facilities. The weight of the tank, which comprises the weight of the outer tank and dished end, are the decision variable in the approach for weight estimation analysis, which carried by using using extrapolation to search optimum diameter and length of the tank The objective function is maximization of the tank capacity. The capability of the lifting equipment in the shipyard is the limitation used in this paper. This research data is based on the shipyard capability of PT. PAL Indonesia, PT. Dok dan Perkapalan Kodja Bahari (Persero), PT. Industri Kapal Indonesia, and PT. Batamec Shipyard. Result obtained that maximum volume of 5,663.369 m3 LNG type C, weight about 450.671 tons with maximum crane lifting capacity in shipyard are 500 tons

Reviewing the impact of LNG technology advancements on global energy markets

Rapid technological advancements in Liquefied Natural Gas (LNG) have catalyzed a transformative shift in global energy markets. This review delves into the profound impact of LNG technology advancements, exploring their multifaceted consequences on the dynamics of the energy landscape. The evolution of LNG technologies, spanning liquefaction, transportation, and regasification processes, has ushered in a new era of energy accessibility, sustainability, and market competitiveness. The burgeoning role of LNG as a cleaner and more versatile fuel source is examined against the backdrop of global efforts to address climate change. Environmental considerations, carbon reduction goals, and the burgeoning demand for cleaner energy sources are driving the increasing adoption of LNG in the global energy transition. Government initiatives supporting LNG adoption and renewable energy policies influencing its utilization are dissected to comprehend the intricate policy factors shaping global LNG consumption. Economic drivers, including cost competitiveness and market dynamics, play a pivotal role in shaping the global LNG landscape. The review assesses the economic growth and industrial demand for LNG, providing insights into the intricate relationship between economic factors and the surge in LNG consumption. Additionally, the expansion of global LNG production capacity, exploration of unconventional gas resources, and geopolitical influences on LNG supply patterns are thoroughly scrutinized to provide a comprehensive understanding of the forces steering LNG trade dynamics. The regional dynamics in LNG trade are elucidated with a focus on major economies such as Asia-Pacific, Europe, and North America. The rising demand from these regions, coupled with infrastructure developments and regulatory frameworks, underscores the intricate interplay of factors shaping LNG trade dynamics on a regional scale. Furthermore, the review delves into the geopolitical implications of recent events on LNG markets, scrutinizing trade agreements and geopolitical risks to provide a holistic view of the broader geopolitical landscape impacting LNG stakeholders. In summation, this review provides a comprehensive analysis of LNG technology advancements and their far-reaching impact on global energy markets. As technological innovations continue to reshape the LNG landscape, this review serves as a roadmap for understanding the intricate interplay of environmental, economic, regional, and geopolitical factors that collectively define the contemporary dynamics of the LNG industry.

An Economical Boil-Off Gas Management System for LNG Refueling Stations: Evaluation Using Scenario Analysis

The use of liquefied natural gas (LNG) in the transportation sector is increasing, and boil-off gas (BOG) management systems are considered viable options to increase economic efficiency and reduce greenhouse gas emissions at LNG refueling stations. The present study proposed an economically optimized method by investigating four refueling station scenarios, including different BOG management systems. Among the four scenarios, the scenario in which compressed natural gas was produced from BOG had the lowest minimum selling price (MSP) and was the most economical. Sensitivity and uncertainty analyses were conducted for the economically optimal scenario, which identified the factors with the most influential impact and their uncertainties on the MSP. Finally, to determine the feasibility of the business through profitability analysis, the net present value, discounted payback period, and present value ratio due to changes in the discount rate were presented, and the discounted cash flow rate of return was found to be 13.22%. As a result of this study, a BOG management system can contribute to improving the economic feasibility for LNG refueling stations by reliquefying BOG and re-selling it (the most efficient way is scenario 4) and will provide an economical guide for countries with much demand for LNG in the transport sector.

Valuation of the Extension Option in Time Charter Contracts in the LNG Market

A rapid transition toward a decarbonized economy is underway, following the Paris Agreement and the International Maritime Organization 2030 decarbonization goals. However, due to the high cost of the rapid transition to eco-friendly energy and the geopolitical conflict in eastern Europe, liquefied natural gas (LNG), which emits less carbon than other fossil fuels, is gaining popularity. As the spot market grows due to increased LNG demand, the usage of period extension options in time charter (T/C) contracts is increasing; however, these options are generally provided free of charge in practice, without economic evaluation; this is because some shipowners want to make their time charter contracts more attractive to the more credible charterers. Essentially, the reason for why this option has not been evaluated is because there is no reliable evaluation model currently used in practice. That is, research on the evaluation model for the T/C extension option has been insufficient. Therefore, this study evaluates the economic value of the extended period option in LNG time charter contracts using machine learning models, such as artificial neural networks, support vector machines, and random forest, and then compares them with the Black–Scholes model that is used for option valuations in financial markets. The results indicate superior valuation performance of the random forest model compared with the other models; particularly, its performance was significantly better than the Black–Scholes model. Since T/C extension options involve significant sums in the balance sheets of both shipowners and charterers, the fair value of these options should be assessed. In this regard, this paper has meaning in proposing valid machine models to efficiently reflect the fair value of period extension options that are provided at no charge in the LNG market.

LNG export diversification and demand security: A comparative study of major exporters

Global demand for liquefied natural gas (LNG) has doubled over the past decade. The long-term outlook for natural gas is strongest among the fossil fuels. Specifically, LNG is expected to play an increasing role in meeting global natural gas demand, as it provides a flexible link between geographically separated suppliers and customers. In the context of the growing role of LNG in the global energy system, this paper focuses on the world's five largest LNG exporters: Australia, Qatar, the United States of America (USA), Russia and Malaysia. In 2021, they accounted for three-quarters of the global supply. By focusing on exporters, the paper addresses the bias in energy policy literature, which is largely concerned with energy importers. The paper engages in a comparative analysis of LNG exports by five suppliers by considering the extent of their diversification. Focusing on the 2009–2021 period, the paper leverages eight variables to explain patterns of diversification of LNG exports among suppliers and over time. The paper finds that the geographical location and gas price differential across regional markets have the most explanatory power. This finding has significant policy implications for the behaviour of LNG exporting states, demonstrating high sensitivity to economic factors.

Forecast Model of Prices for Liquefied Natural Gas in the World Asian Energy Market

The relevance of the study lies in the fact that concerning the strategic objectives of Russia to take a share of the growing world market of liquefied natural gas, it is advisable to assess the impact of factors affecting the development of the global liquefied natural gas market. This article provides a comparative analysis of exports and imports in the global LNG market by region, identifies potential trends in the development of global LNG trade over the past 50 years, it makes a price forecast for liquefied natural gas (LNG) for the Asia-Pacific region (APR) based on a correlation and regression analysis of the dependence of LNG prices on changes in factors such as world oil prices, global demand for LNG, exchange rates and growth rates of the Asia-Pacific economies.

North American Natural Gas Markets Under LNG Demand Growth and Infrastructure Restrictions

Strong liquefied natural gas (LNG) demand growth, especially in Asia, could increasingly motivate gas infrastructure development in North America. Nevertheless, opposition to new gas infrastructure is formidable in some of the U.S. states and Canadian provinces that are well positioned to supply LNG to the Asian market. In this paper, we investigate the combined effects of LNG demand growth and export infrastructure restrictions on North American natural gas markets through 2050. To do so, we build a mixed complementarity model with endogenous capacity investments. It is parameterized using publicly available data sources. Our results show that even if new export terminals cannot be constructed on the West Coast, LNG exports largely shift to other regions rather than suffer an overall decline. Increasing external demand for LNG puts upward pressure on regional prices in North America, and directs production and pipeline flows toward the regions that export LNG.

Evaluating British Columbia's economic policies for liquefied natural gas development

Interest in developing liquefied natural gas (LNG) has recently increased with global demand rising at a higher rate than any other fossil fuel in the last ten years. While the increase in demand for LNG has created an opportunity for countries with natural gas stocks, there is a significant amount of competition among these producing countries. As a result, jurisdictions have been implementing policies and subsidies to enhance their competitiveness in the global LNG market. We investigate the impact of this phenomenon in one gas-rich region, British Columbia, Canada, where the provincial government has promoted the development of a large-scale LNG industry. Drawing from staple theory, we explore how government policy has been shaped by the needs of the resource sector to provide incentives for expansion without undertaking comprehensive evaluation of the costs and benefits. As a result, the benefits of the expansion are overestimated, while the costs are underestimated. Our analysis shows that a more comprehensive and transparent evaluation of resource development policies is necessary to avoid suboptimal policies and ensure that development is in the public interest. • This study's financial analysis estimates government revenue using BCA methodology. • Results show previous revenue forecasts overestimated and costs underestimated. • BC will likely generate more revenue by not developing LNG due to subsidies. • Analysis shows a more comprehensive evaluation of LNG policies is necessary. • The findings of this study support many of the precepts of staple theory.

Top three LNG buyers to search for alternative LNG pricing structure after paying a total cost premium of $56 billion for oil-indexed LNG contracts in 2019 and 2020 – how will this affect Australia as the number one supplier to this market?

Increasing spreads between spot liquefied natural gas (LNG) and oil-indexed contracts have resulted in the world’s top three LNG buyers paying a cost premium of $33 billion in 2019 and 23 billion in 2020. The top three buyers are Japan, China and South Korea, which had a combined 151Mt of long-term LNG contracts indexed to oil in 2020. This cost premium shows what top Asian buyers are currently paying for the security of LNG supply through long-term oil-indexed contracts. However, it also shows the potential reward Asian buyers have if they manage to develop a liquid LNG pricing hub in Asia to which they can index their contracts. Japanese buyers’ efforts of increasing flexibility in contracts, both through take-or-pay agreements and destination flexibility and aims of growing the spot market, will increasingly support the liquidity of the LNG market. However, there will be resistance from the other side of the table, for where someone is paying a premium, or making a loss, someone is making money. 2020 was another year of plenty for LNG producers selling oil-indexed volumes to Asian markets. Australia is the largest seller of LNG to Japan, China and South Korea with over 60Mt of long-term LNG contracts indexed to oil in 2020. Australia has benefited from having their contracts indexed to oil, but what’s next? In this paper, Rystad Energy will discuss the future market for Australian LNG exports including development in LNG demand, contract trends and price spreads.

Finding net zero: how green LNG can improve the competitiveness of Australian LNG

Liquefied natural gas (LNG) will continue to play a critical role in the global energy mix. Even under sustainable development scenarios, which envisage aggressive emissions reductions, LNG demand grows through 2040. The benefits of gas combustion over coal are clear and well known, but pressure is mounting for LNG players to make their gas even cleaner by reducing emissions and decarbonising portfolios. Asian LNG buyers are increasingly carbon-conscious. Six ‘carbon-neutral’ cargoes and a long-term supply tender have been announced. More are likely to follow as visibility on carbon credentials becomes the norm, potentially leading to greater scrutiny of projects and new price premiums. As a result, Australian LNG operators, many of whom have comparatively large carbon footprints, must begin the journey towards carbon neutrality. Innovation is key, with proposals including the use of batteries, renewable energy and carbon capture and storage. This study will highlight how these solutions can be deployed to improve Australian LNG’s carbon competitiveness. Regulation must advance in parallel with technology. There remains a lack of transparency and standardised emissions measurement across the industry. The definition of carbon-neutral itself is inconsistent, ranging from carbon-neutrality up to the point-of-sale all the way to an ambitious objective to offset full life cycle emissions. But the trend towards greener LNG is here to stay. In a jurisdiction at the forefront of carbon reduction, Australian players have an opportunity to partner with buyers to shape this new, ‘greener’ market. This study will consider what Australian operators must do to maintain competitiveness in a changing world.

A Study on the Algorithm of Quality Evaluation for Fiber Laser Welding Process of ASTM A553-1 (9% Nickel Steel) Using Determination of Solidification Crack Susceptibility.

To prevent the contamination of the marine environment caused by ship exhaust gas, the demand for LNG (liquefied natural gas) fueled ships is increasing worldwide. A tank to store LNG at cryogenic temperatures is indispensable to such LNG-fueled ships. Since the materials used for LNG fuel propulsion tanks must have excellent mechanical properties such as impact toughness at cryogenic temperatures, the International Maritime Organization limits the IGC Code only to four types. Most of the tank materials for LNG-fueled ships ordered recently are adopting ASTM A553-1 material, but a systematic study to analyze the problem of quality degradation that may occur when welding A553-1 steel is required to secure the safety of cryogenic tanks. Therefore, in this study, among various quality problems, the tendency of weld solidification crack vulnerability is identified, and a decision system and optimization procedure are developed. In addition, a method of securing the welding quality of A553-1 steel was proposed by setting quality deterioration standards.

Liquefied Natural Gas in Mobile Applications—Opportunities and Challenges

Liquefied natural gas (LNG) is one of the most influential fuels of the 21st century, especially in terms of the global economy. The demand for LNG is forecasted to reach 400 million tonnes by 2020, increasing up to 500 million tonnes in 2030. Due to its high mass and volumetric energy density, LNG is the perfect fuel for long-distance transport, as well as for use in mobile applications. It is also characterized by low levels of emissions, which is why it has been officially approved for use as a marine fuel in Emission Control Areas (ECAs) where stricter controls have been established to minimize the airborne emissions produced by ships. LNG is also an emerging fuel in heavy road and rail transport. As a cryogenic fuel that is characterized by a boiling temperature of about 120 K (−153 °C), LNG requires the special construction of cryogenic mobile installations to fulfill conflicting requirements, such as a robust mechanical construction and a low number of heat leaks to colder parts of the system under high safety standards. This paper provides a profound review of LNG applications in waterborne and land transport. Exemplary constructions of LNG engine supply systems are presented and discussed from the mechanical and thermodynamic points of view. Physical exergy recovery during LNG regasification is analyzed, and different methods of the process are both analytically and experimentally compared. The issues that surround two-phase flows and phase change processes in LNG regasification and recondensation are addressed, and technical solutions for boil-off gas recondensation are proposed. The paper also looks at the problems surrounding LNG installation data acquisition and control systems, concluding with a discussion of the impact of LNG technologies on future trends in low-emission transport.

COP optimization of propane pre-cooling cycle by optimal Fin design of heat exchangers: Efficiency and sustainability improvement

The demand for LNG (liquefied natural gas) increases each year, and relevant studies have been developed in order to reduce both power consumption and greenhouse gas emissions of LNG plants. Multistream plate-fin heat exchangers (MPFHE) are widely used in these plants due to their large heat transfer surface area per unit volume for multi-phase flows. The thermal-hydraulic performance of heat exchangers also impacts on compressor shaft work of liquefaction plants. In this study, an automated optimization procedure is performed for commonly used MPFHE in a three-stage propane pre-cooling cycle to maximize the coefficient of performance (COP) of liquefaction plants. Four geometric input parameters (fin type, fin height, fin thickness, and fin frequency) have been selected for the optimization. The optimal heat exchangers and operating conditions of the entire refrigeration cycle and their feasibility are taken into account. The optimal fin designs of the heat exchangers affect the cycle operating conditions, which results in COP improvements of 18.9%, 2.5%, and 9.4%, and ranging from 7% to 32% of mitigation in CO2 emission when compared to the literature cases. Compared with the baseline case, the COP is improved by 9.4%, compressor shaft power is reduced by 7.1% (about 11.2 MW), heat transfer is augmented by 1.5% (3.8 MW), and CO2 emission is reduced by 6.3 t/h, which result in more efficient and sustainable LNG production.

Strategic and operational decision-making in expanding supply chains for LNG as a fuel

The European Union aims for a 40% reduction in greenhouse gas emissions by 2030, compared to 1990 levels, and recognizes the opportunities of Liquefied Natural Gas (LNG) as an alternative fuel for transportation to reach this goal. The lack of a mature supply chain for LNG as a fuel results in a need to invest in new (satellite) terminals, bunker barges and tanker trucks. This network design problem can be defined as a Two-Echelon Capacitated Location Routing Problem with Split Deliveries (2E-CLRPSP). An important feature of this problem is that direct deliveries are allowed from terminals, which makes the problem much harder to solve than the existing location routing literature suggests. In this paper, we improve the performance of a hybrid exact algorithm and apply our algorithm to a real-world network design problem related to the expansion of the European supply chain for LNG as a fuel. We show that satellite terminals and bunker barges become an interesting option when demand for LNG grows and occurs further away from the import terminal. In those situations, the large investments associated with LNG satellites and bunker barges are offset by reductions in operational costs of the LNG tanker trucks.

에너지전환 정책에 따른 우리나라 중기 발전용 천연가스 수요 전망

Liquefied natural gas (LNG) is becoming a key energy source in this era of energy transition. LNG demand is expected to continuously increase, especially for use in power generation. This study predicts the generation of power and the LNG demand for power generation during 2017~2030, based on the 8th Basic Plan for Power Supply and Demand using the power simulation forecasting model M-Core. As a result of the analysis, it is expected that the demand for LNG for power generation in 2031 will reach 13.2 million tons under the economic supply scenario and 17.2 million tons under the environmental supply scenario. When uncertainties such as delayed completion of new plant construction and declining utilization rate of nuclear power plants are reflected, the demand is predicted to increase by 123-232 thousand tons.

The emergence of China as an LNG super user

China has recently undergone a period of rapid industrialisation and growth. In 2009 the country became the world’s largest energy consumer, with much of this demand being historically met by coal. This heavy reliance on coal, coupled with rapid urbanisation, resulted rising smog levels and deteriorating air quality. In response to public health concerns, the Chinese government introduced several policies to transition to lower polluting fuels, with natural gas being the main beneficiary. In 2017 China’s liquefied natural gas (LNG) imports grew by an enormous 46%, to 38 Mt, as the government ordered heavy manufacturers in two provinces and 26 cities to switch from coal to gas and households to cut coal use for winter heating. Although government air quality targets were met, it resulted in severe winter gas shortages particularly in northern China. A more measured coal-to-gas switching program was undertaken in 2018 and LNG imports continued to surge reaching 54 Mt, another 41% year-on-year increase. Going forward Chinese LNG growth is expected to face competition from increased pipeline gas imports and indigenous gas production. However, there are still many risks to these forecasts, and much to play out as the market continues to be liberalised. As such, Chinese LNG demand presents an enormous opportunity for LNG suppliers both now, and well into the future.