This year, Europe is expected to be the fastest-growing market for liquefied natural gas (LNG) and will absorb the fuel despite supplied by Russia’s record-high volumes by pipelines.
Royal Dutch Shell Plc said on Monday that it expects to get an extra 20 million to 30 million tons of LNG this year, double the increase in Asia. According to Shell who controlled about 22% of global LNG in 2018, there is a resurgence of LNG flowing into European markets and Asia’s growth may not be as strong compared to 2 years ago.
Additional imports of gas are needed for Europe to make up for declining domestic production. Russia, the biggest supplier for LNG can fill the shortfall with imports. It is expected that the global supply will grow up to 35 million tons this year, which also translates to 10% as compared to 2018’s demand.
The Europe market is expected to tighten early next year when other regions might start scrambling for gas and Europe might start struggling to attract Cargos.