The current situation in the world and a strong demand for cleaner-burning fuel have accelerated the requirements for new liquefied natural gas (LNG) terminals—both export and import facilities. According to an IGU World LNG report from 2022, 49.8 million tons/year of net regasification capacity was added globally in 2021, compared with 19 million tons/year added in the previous year. As of April 2022, 164.8 million tons/year of new regasification capacity was under construction. Additionally, the global trade of LNG increased by 4.5% in 2021, and early numbers suggest that the global LNG supply and trade will increase by 19% between 2022 and 2026.
In March 2022, the EU’s desire to become independent of Russian oil and gas paved the way for a historic agreement on LNG trade between the US and the EU. The US will strive to ensure additional LNG volumes for the EU market of at least 15 billion m3 in 2022. This corresponds to 12% of the natural gas imported by the EU from Russia. Going forward, the European Commission will work with EU Member States to ensure stable demand for additional US LNG of approximately 50 billion m3/y until at least 2030. In 2021, the US supplied Europe with 22 billion m3, according to EU data. In June alone, the US conveyed more LNG to European countries than what was the case all of last year, according to Reuters.
On the other side of the world, China has begun the construction of approximately 40 LNG tanks, each with the capacity of 220 000 m3 low-gradient LNG. According to Global LNG Hub, China’s LNG import increased by 82% from 2017 to 2020. As per April 2022, countries in Asia and the Asia-Pacific, such as Japan, China, India, and South Korea, are responsible for approximately 80% of the regasification capacity under construction that is being carried out at new and existing LNG terminals.
In 2022, there has been a volatile market with gas prices on the rise. The reason leads back to the adjustment the market is currently going through following the step-down from Russian gas supply. But with many constructions and expansions of LNG terminals, it indicates that the market tries to stabilise itself.
The latest edition of Global Voice of Gas concluded that the future of LNG requires greater and more stable investment in supply as well as added attention to energy security. The perception is the same at Svanehøj, which expects the LNG trade to increase despite the growing costs, as construction of both export and import terminals are increasing significantly in the coming years—mainly in the US and China, respectively, but also in Europe. According to the Center for Liquefied Natural Gas, approximately 30 projects are currently under way in Europe, as the EU lacks import terminal capacity to accommodate the increase of LNG export from the US.
With growing trade of LNG, an increased diversification of LNG supply sources may occur in the LNG tanks as different compositions of LNG are stored in the tanks. It is the primary concern in terms of assuring stability and safety in LNG storage.