LNG

Through 2030, global electricity consumption will grow at least 2.5 times as fast as overall energy demand, the International Energy Agency (IEA) forecasts, with emerging Asian economies accounting for near 80% of incremental electricity and related LNG demand to fuel gas peaking power stations.

A rebound in coal-burn is limiting China's power sector pull for LNG imports to 20 million tons, prompting Kpler analysts to revise down earlier projections of 35 Mt. Weather risk poses upside risk to coal-burn, with hotter summer forecast to add 50 Terawatt-hours (TWh) to China’s electricity demand.

Rating agency Fitch is expecting oil prices to fall further in 2026 from 2025 levels as OPEC+ countries are re-capturing market share. North American E&P companies are consequently focussed on consolidation and cost cutting to manage the impact weak oil prices, analysts noted, warning Capex cuts are on the cards.

Greater utilisation of India’s fleet of gas-fired power plants could accelerate LNG imports to bridge the gap left by marginal domestic gas production increases, the International Energy Agency (IEA) finds. Supportive policies by the Indian government could tilt the national power gen mix more towards cleaner-burning natural gas and hydrogen in the coming years.

Forecasts for Egypt’s LNG imports have been revised higher by the London-based consultancy Energy Aspects, lowering Europe’s availability to import the super-chilled fuel and burn it to generate electricity this autumn. Analysts are bullish on TTF winter prices, calling them “slightly undervalued” as they started to rebound towards €39/MWh.

Due to become the world’s third largest gas producer by 2027, China’s imports will still continue to grow in the long term. 

ASX-listed Horizon Oil has just finalised the engineering concept on its Western LNG development in Papua New Guinea. The 1.5 mpta project will generate US$20-30 billion in revenues over its lifetime, according to Horizon’s new CEO Michael Sheridan.