The international LNG importer group releases its annual report for 2017

      Date：2017-09-18

       In 2016, international LNG trade increased 7.5 per cent year on year, to a strong level in 2011. Growth is mainly due to Australia's increase in LNG exports. However, there was a shortage of LNG supply, mainly due to the delay in production, slow development and the reduction of exporters, so there was no expected wave of LNG trade. In addition, the demand for Europe and north Asia has increased further due to lower temperatures last winter, resulting in a lack of market supply.

       Another look at LNG importing countries, a surge in imports from the Middle East, and the establishment of its main importer. China and India are also among the leading importers after a year of development in 2015.

       Low oil prices continue downward pressure on LNG trading prices. Plentiful supply in the Pacific and slow growth in demand have made LNG spot prices the lowest in seven years. Currently depressed market conditions cause some investment to be cancelled or postponed

       Despite the emergence of new LNG suppliers around the world last year, the import model is still very regional. In the asia-pacific region, for example, Australian and Indonesian LNG supplies are mainly in Asia, while Qatar's is entering the Middle East.

       The key factor affecting LNG trade is the cost of shipping, which foreshadows that American LNG products will not be available in Asia. With the expansion of the next few years Australia LNG project and the new production line put into use, the excess supply of global LNG market will appear until mid 20 s situation will be improved, surplus products will be absorbed by the emergence of new importers, or shut down due to low prices.

       Given that only two projects have completed final investment decisions in the near future, it is foreseeable that market supply will be tight in the long run. In this case, it will be more than ever before to reduce costs and develop new projects through cooperation. In response to market changes and the uncertainty of future supply, it is particularly important to make the right strategy. More and more LNG buyers are paying more attention to the flexibility of contracts, such as the flexibility of destination and commitment policies, and the price competitiveness of commodities. Spot and short-term trading volumes will also grow in a market with sufficient supply and a large number of long-term contracts coming due.

       With the emergence of equipment such as FSRU, LNG import is more efficient and safe. As an alternative fuel for diesel, LNG will increase its use in heavy trucks and public transport. In order to better implement climate treaty of Paris, at the same time also to meet from power generation industry, urban construction and transportation industry's growing demand for energy, natural gas will play an important role together with the renewable energy. In addition, the international maritime organization has launched the provisions of the maritime fuel by 2020 to reduce sulfur emissions, makes the LNG has the opportunity to become the main fuel of maritime transport, maritime fuel service is developed.

       In order to promote global LNG import activities and realize the best way to trade, the international organization for LNG importers (GIIGNL) will continue to promote the contract with the relationship between the LNG traders, optimization efficiency and maintain higher industry safety standards.