LNG carrier owners can look forward to a few more years of strong demand for the product from China, latest research suggests.
China’s shale gas production is unlikely to meet Beijing’s goal of 30bn cubic metres (bcm) by 2020, according to Wood Mackenzie.
“China’s shale gas production will likely reach 17 bcm in 2020, nearly double the 2017 level,” said the UK-based consultancy.
"China is eager to materialise its shale gas potential to fuel its massive gasification initiative and support rising demand growth," explained Wood Mackenzie consultant Dr Tingyun Yang.
“Considering the impact of shale gas production on domestic demand, the 2020 13-bcm 'gap' will have to be filled by imports, in particular LNG,” said Wood Mackenzie consultant Lynn-Yuqian Lin, consultant.
“We have already witnessed how China was able to leverage on flexible LNG to cope with record-high demand this recent winter season.”
Separately, Woodmac has forecast China’s LNG imports will increase by a quarter to nearly 49mt this year, from record highs in 2017.
