By Adewale Sanyaolu
Nigeria and other African nations are missing in the list of countries with outstanding performance in global liquefied natural gas (LNG) export and demand markets.
The country’s poor global LNG performance rating is contained in Shell’s annual LNG outlook released yesterday in London.
Although Nigeria leads Africa’s LNG exporters in 2021 with 17.9 million metric tons (MMt), followed by Algeria with 12.3 MMt and Egypt with 6.9 MMt, according to the main information provider, IHS Markit, Nigeria and other African countries have failed to register a place in the world. LNG classification.
The outlook revealed US-led export growth in 2021 with a year-on-year increase of 24 million tonnes and is expected to become the world’s largest LNG exporter in 2022, adding that exports of LNG increased in 2021 despite a number of unexpected interruptions which dented LNG available for delivery.
On the demand side, China and South Korea led LNG demand growth in 2021, with China increasing its LNG imports by 12 million tonnes to 79 million tonnes, overtaking Japan to become the largest world’s largest importer of LNG.
Overall, global LNG demand is expected to exceed 700 million tonnes per year by 2040, a 90% increase over 2021 demand.
According to the report, Asia is expected to consume most of this growth as domestic gas production declines, regional economies develop and LNG displaces higher-emitting energy sources, helping to meet addressing air quality concerns and making progress towards carbon emissions targets.
Shell’s outlook indicates that in 2021, Chinese LNG buyers have signed long-term contracts for more than 20 million tonnes per year, signaling a continued role for LNG in the coal-to-gas transition in power sectors. keys and helping to achieve its ambition to be carbon neutral by 2060.
Additionally, global LNG trade grew by 6% to 380 million tonnes in 2021 as many countries recovered from the economic impact of the COVID-19 pandemic, according to Shell’s latest annual outlook. on LNG.
The outlook argued that growing demand for LNG, combined with supply constraints, has caused gas and LNG prices to remain volatile throughout the year, with prices reaching record highs in October 2021. while Europe, with historically low storage levels, struggled to secure LNG cargoes to face the expected winter. gas demand.
According to the outlook, the volatility highlights the need for a more strategic approach to ensuring reliable and flexible gas supply in the future to avoid exposure to price spikes, indicating that a gap between supply and LNG demand is expected to emerge in the mid-2020s and focuses attention on the need to invest more to increase supply and meet growing LNG demand, particularly in Asia.
“The last year has shown how crucial gas and LNG are in providing communities around the world with the energy they need as they strive to get back on track after the challenges caused by the COVID-19 pandemic,” said Wael Sawan, Integrated Gas, Renewables and Director of Energy Solutions at Shell.
“As countries develop low-carbon energy systems and pursue net-zero emissions goals, focusing on cleaner forms of gas and decarbonization measures will help LNG remain a reliable and flexible source of energy. for decades to come.”